Service Tax on Sale of Post Paid / Prepaid Cellular Sim Cards

On the issue of applicability of Service Tax on sale of Post Paid / Prepaid cellular sim cards Honorable Tribunal has held that:

-  The sale of Sim Cards is within the purview of Sales Tax.

- Cellular Company has paid full service tax on sale of sim cards.

- Distributor is engaged in selling and purchasing of sim cards independently on his own account.

-  There can not be any service tax on profit earned by the distributor. 

(For full text of judgment - visit 2007 -TMI - 2118 - CESTAT, BANGALORE)