Binding precedent on service tax for commission earned led the Court to reject the contrary challenge and dismiss the appeal.

Service tax on commission earned by the respondent was held not payable because the same issue had already been decided against taxability by a prior Division Bench decision of the same HC. That earlier ruling had also been left undisturbed when the Supreme Court dismissed the challenge, so the precedent was binding and no interference was warranted. On that basis, the Court rejected the contrary challenge and dismissed the appeal.

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Issues: Whether the respondent was liable to pay service tax on the commission earned by it.

Analysis: The dispute was covered by an earlier Division Bench decision of the same High Court holding that the respondent was not liable to pay service tax on such commission. The appeal against that earlier decision had also been dismissed by the Supreme Court. In view of that binding precedent, no ground for interference existed.

Conclusion: The respondent was held not liable to pay service tax on the commission earned by it, and the appeal was dismissed.

Ratio Decidendi: Where an identical issue has already been conclusively decided by binding precedent, and that precedent has been left undisturbed by the Supreme Court, the Court will not interfere and the contrary challenge fails.

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