No Service Tax Liability for Sellers of SIM and Recharge Cards when Telecom Operators Pay Tax on Full MRP

Saraswati Gas Service Vs CCE & ST (CESTAT Chandigarh)

The appellant, Saraswati Gas Service, was appointed as a franchisee by M/s Bharat Sanchar Nigam Limited (BSNL) for the sale and purchase of SIM cards. The dispute arose when the Department asserted that the appellant’s activities amounted to ‘Business Auxiliary Service’ and attracted service tax liability.

Key Facts:

• The Department issued a show cause not

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