Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1099 - AT - Service TaxValuation - includibility - whether the value of Sim Card would become a part of the Telephone Services being provided by the appellants? - Held that - the issue is no more res integra and stands decided in the case of M/s. Idea Mobile Communication Ltd. Vs Commissioner of Central Excise & Customs, Cochin 2011 (8) TMI 3 - SUPREME COURT OF INDIA maintained clearly that the amount received by the service provider towards Sim Card will form part of the taxable value for service tax - demand upheld. Extended period of limitation - penalty - Held that - it is not a case invoking the extended period of limitation - as regards penalty, the issue was under litigation before authorities and as such it cannot be said that there was any malafide on the part of the appellants - penalty not warranted. Appeal allowed in part.
Issues: Whether the value of Sim Card is part of Telephone Services; Limitation period for demand; Imposition of penalty and applicability of Section 80.
Analysis: 1. Value of Sim Card in Telephone Services: The Tribunal noted that the issue of whether the value of a Sim Card forms part of taxable value for service tax has been settled by the Hon'ble Supreme Court in the case of M/s. Idea Mobile Communication Ltd. The Supreme Court decision held that the amount received by the service provider towards Sim Card will be included in the taxable value. Consequently, the Tribunal upheld the demand against the appellant in this regard. 2. Limitation Period for Demand: The Tribunal, upon inquiry, found that the demand in this case was not within the period of limitation and did not warrant invoking the extended period of limitation. Therefore, the demand confirmed by the lower authorities was upheld by the Tribunal. 3. Imposition of Penalty and Section 80: Regarding the penalty imposed on the appellants, the Tribunal considered that the issue was under litigation at various levels, including the Kerala High Court, before being settled by the Supreme Court. The Tribunal observed that there was no malafide intention on the part of the appellants, and the penalty was set aside. The Tribunal decided to extend the benefit of Section 80 to the appellants, considering the circumstances. Consequently, the penalty imposed was revoked, and the appeal was disposed of accordingly. In conclusion, the Tribunal's judgment clarified the inclusion of Sim Card value in Telephone Services for tax purposes based on the Supreme Court precedent, upheld the demand within the limitation period, and revoked the penalty while applying the provisions of Section 80 due to the absence of malafide intent on the part of the appellants.
|