Service tax on bought-out goods supplied with drilling rigs was held covered by prior rulings and set aside.

Service tax was not payable on the sale or supply of bought-out goods, including spares supplied with drilling rigs and ancillary equipment, where the activity was alleged to constitute Business Auxiliary Service. The controversy had already been decided in the appellant's own earlier cases, and the Revenue accepted that the issue was covered by those decisions. Following the prior rulings and noting that proceedings on the same issue had later been dropped, the tribunal treated the matter as no longer res integra and ruled in favour of the appellant, setting aside the impugned orders.

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Issues: Whether service tax was payable on the sale or supply of bought out goods such as spares supplied along with drilling rigs and ancillary equipment, and whether such activity amounted to Business Auxiliary Service.

Analysis: The issue had already been decided in the appellant's own cases, and the Revenue fairly accepted that the controversy stood covered. The prior decisions were followed, and the proceedings had also been dropped in a subsequent matter on the same issue, showing that the controversy no longer survived as an open question.

Conclusion: The issue was held to be no longer res integra and was decided in favour of the appellant. The impugned orders were set aside.

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