Case Law Details
J.K. Enterprises Vs Principal Commissioner (CESTAT Delhi)
According to the appellant it is trading in SIM cards and recharge coupons and, is not rendering any service to the principal. It is buying the SIM cards from it and selling them to others. Such arrangements are made by various telecom operators whereby they appoint distributors to buy and sell their SIM cards. The case of the Revenue is that since the Supreme Court has held in the case of Idea Cellular, that SIM card is not goods and its value is includible to the value of the service provided by the telecom operator, buying and selling of SIM cards can be considered as rendering business auxiliary service (BAS) to the principal. We find that this Tribunal has consistently held that buying and selling of SIM cards and recharge coupons does not amount to providing business auxiliary service (BAS) to the principal in several cases.
The impugned order is set aside and the appeal is allowed with consequential relief to the appellant.
FULL TEXT OF THE CESTAT DELHI ORDER
M/s J.K. Enterprises1 filed this appeal to assail the order in original dated 22.07.2015 passed by the Principal Commissioner of Central Excise, Alwar whereby he confirmed the demand of Rs. 62,20,384/- as service tax under Section 73 and imposed and an equal amount of penalty under Section 78 and further imposed a penalty under Section 77.
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