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TMI Blog2012 (11) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... A/398/2012-Cus.(PB) - Dated:- 15-5-2012 - Ms. Archana Wadhwa, Shri Mathew John,JJ. REPRESENTED BY : Shri B.L. Narasimhan, Advocate, for the Appellant. Shri Amrish Jain, AR, for the Respondent. [Order per : Mathew John, Member (T)]. The Appellants are engaged in the business of providing mobile telephone services. During 19-12-1997 to 31-3-2000, they provided pre-paid and post-paid connections to subscribers. In the case of post paid connection the bills were raised for the sale of SIM cards and sales tax was paid on the value of SIM cards and separately another bills were raised for activation charges on which service tax was paid. In the case of pre-paid connections the same type of transactions were done through th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax and sales tax and not both at the same time. They argue that the fact that the SIM cards were sold at a price higher than the price for import cannot be a reason to conclude that price of SIM card would be part of the service provided. 4. The ld. AR for Revenue submits that the question whether value of SIM cards will form part of the value of service rendered has been decided by Kerala High Court in CCE v. Idea Mobile Communication - 2010 (19) S.T.R. 18 (Ker.) and affirmed by Supreme Court as reported at Idea Mobile Communication Ltd. v. CCE - 2010 (20) S.T.R. J77 (S.C.). He points out the appellants were never disclosing to the department the fact that they were charging separately for value of SIM card from customer and wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce being provided and only facilitates the identification of the subscribers, their credit and other details, it would not be assessable to sales tax. In our opinion the High Court ought not to have finally determined the issue. In any event, the High Court erred in including the cost of the service in the value of the SIM card by relying on the aspects doctrine. That doctrine merely deals with legislative competence. As has been succinctly stated in Federation of Hotel Restaurant Association of India v. Union of India - (1989) 3 SCC 634 - subjects which in one aspect and for one purpose fall within the power of a particular legislature may in another aspect and for another purpose fall within another legislative power. They might be ove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... light of the observations contained in this judgment. 6. Considering the nature of dispute as detailed above, we are of the view that this is not a case where the extended period of time could have been invoked for demanding service tax not paid on value of SIM cards sold. While giving this decision we note that the period of demand in this case is Dec. 1997 to March 2000 when the law involved in the matter was still evolving. We also note that in 2003, the GOI issued exemption Notification No. 12/2003-S.T. for value of goods sold in the course of providing service. So our decision in this matter is based on an overall appreciation of the evolution of law. 7. Thus the appeal is allowed by holding that the impugned demands are time-bar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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