9911796707
TMI Blog2007 (2) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the category "Telephones". 2. A subscriber desiring to have cellular phone connection had to be in possession of a hand-set. He could procure the hand-set from the appellants or others in the open market. The appellants would give connection to the subscriber by activating the handset, for which purpose a Subscriber Identity Module (SIM, for short) card was supplied by the company and inserted into the hand-set. The company collected the price of the SIM card and activation charge separately from the subscriber. They paid Service tax only on the latter and did not pay such tax on the price of the SIM card during the period July, 1995 to December, 1997. The department issued a show-cause notice under Section 73 of the Finance Act, 1994 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te, Sales tax was paid on the price of SIM cards by the appellants. Learned Counsel would rely on the Apex Court's judgment in BSNL v. Union of India & Ors. [2006 (2) S.T.R. 161 (S.C.) = AIR 2006 S.C. 1383], wherein one of the issues which came up for consideration was whether SIM card was "goods" within the definition of this term in the Kerala General Sales Tax Act. Their Lordships were considering, inter alia, appeals against a judgment of the Kerala High Court rendered in the case of Escotel [2006 (2) S.T.R. 567 (Ker.)]. The issue arising from the High Court's judgment was considered by the apex court in paragraphs 86-90 of its judgment. The State Sales Tax authorities had sought to include activation charges in the cost of SIM cards fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority under the Sales Tax Act and the one before the Service tax authority under the Finance Act, 1994, insofar as a SIM card is concerned, are essentially the same, i.e., whether the SIM card is "goods" on which Sales tax is leviable or whether it is part of a service on which Service tax is leviable. A decision on the issue raised before us will, therefore, have to be taken by the original authority after considering the claim of the appellants, which is said to be supported by documentary evidence. 6. In the result, the impugned order is set aside and this appeal is allowed by way of remand, directing the original authority to examine afresh the question whether the SIM cards supplied by the appellants to their subscribers during the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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