The Court held that the existence of a common director does not dilute corporate separateness, nor does it authorise the tax department to recover dues of one company from another.

The Tribunal set aside the service tax demand against the Amway distributor, noting the SCN lacked clarity and held that distributors resell goods on their own account not service providers.

The CBI Court also sentenced the officer’s wife to one year of rigorous imprisonment along with a fine of ₹50,000.