Service tax on difference between sale price of SIM & amount remitted to telephone company

Virmati Software And Telecommunications Limited Vs Commissioner of Central Excise & ST, Ahmedabad (CESTAT Ahmedabad)

As regards the demand of Rs. 47,43,442/- which represent service tax on difference between the telephone recharge amount received from customers and amount out of the same paid to telecom companies. In this fact, it appears that difference amount is nothing but commission against sale of SIM Cards or recharge of SIM Cards. On this issue various judgments have been passed and some judgments are cited below:-

(a) CCE, Meerut vs. Moradabad Gas Service – 2013 (31) STR 308 (Tri. Del.)

(b) GR Movers vs. CCE, Lucknow – 2013 (30) STR 634 (Tri. Del.)

(c) Daya Shankar Kailash Chand vs. CCE Lucknow – 2013 (30) STR 428 (Tri. Del.)

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