2011 (7) TMI 555 - AT - Service Tax

Waiver of per-deposite - whether the sale of SIM cards and recharge coupons on behalf of Bharat Sanchar Nigam Limited (BSNL) amounts to providing of taxable services or not? - Held that - Issue is prima facie covered by the decisions in the case of Vallamattam Communications Vs CCE Cochin 2007 (11) TMI 272 - CESTAT BANGLORE decided in favour of assessee stating that laying down that the assessee acting as a dealer and selling SIM cards and recharge coupons is not providing any taxable service under the category of Business Auxiliary Service - Therefore set aside the impugned order and remand the matter to Commissioner(Appeals) for decision on merit without insisting on any pre-deposit.

Summary

Issues Involved: Whether the sale of SIM cards and recharge coupons on behalf of Bharat Sanchar Nigam Limited (BSNL) amounts to providing taxable services or not.

Comprehensive Analysis:

1. Issue of Taxable Services: The Tribunal considered whether the sale of SIM cards and recharge coupons constitutes taxable services. The Tribunal noted that the issue is covered by various decisions such as Vallamattam Communications Vs CCE Cochin, R.B. Agencies Vs. CCE Calicut, JR Communications & Power Controls Vs. CCE Trichy, Devangi Communications Vs. CST Mysore, CCE Jalandhar Vs. Garage Tools Corpn., and Hutchison Max Telecom Pvt.Ltd Vs CCE Mumbai. These decisions establish that acting as a dealer and selling SIM cards and recharge coupons does not fall under the category of taxable Business Auxiliary Service.

2. Decision on Stay Petition: The Tribunal found that the appellants have presented a strong prima facie case based on the precedents mentioned above. Consequently, the Tribunal allowed the Stay Petition unconditionally, setting aside the Commissioner(Appeals)'s order which dismissed the appeal for non-compliance with the Stay Order requiring a deposit of 50% of the total dues.

3. Remand for Decision on Merit: Since the Commissioner(Appeals) did not decide the appeal on its merits, the Tribunal remanded the matter back to the Commissioner(Appeals) for a decision on merit without the necessity of any pre-deposit. This decision ensures that the appeal will be reconsidered based on its substantive merits.

4. Disposal of Stay Petition and Appeal: The Tribunal concluded by disposing of both the Stay Petition and the appeal in the aforementioned manner, providing clarity on the issue of taxable services related to the sale of SIM cards and recharge coupons on behalf of BSNL.

This detailed analysis of the judgment highlights the Tribunal's considerations, decisions, and the legal implications of the case regarding the provision of taxable services in the context of selling SIM cards and recharge coupons.