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TMI Blog2016 (4) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... ertained a bonafide belief as to the sale of sim cards is not a taxable activity. Therefore, in view of the decision of this bench in the case of Bharti Airtel Ltd., the penalties are set aside by invoking the provisions of Section 80 of the Finance Act, 1994. - Appeal disposed of - Appeal No. ST/236/12-Mum - A/86524/16/STB - Dated:- 1-3-2016 - M V Ravindran, Member (J) And C J Mathew, Member (T) For the Appellant : Shri Vinay Jain, CA For the Respondent : Shri B Kumar Iyer, Supdt (AR) ORDER Per M V Ravindran This appeal is directed against Order-in-Original no. 56/STC-1/SKS/11-12 dated 31/01/2012 passed by the Commissioner of Service Tax, Mumbai. 2. Heard both the sides and perused the records. It transpires tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the consumer of goods/services is collected by the assessee (manufacturer/service provider) and remitted to the Government. When the amount is collected for the provision of services, the total compensation received should be treated as inclusive of service tax due to be paid by the ultimate customer of the services unless service tax is also paid by the customer separately. So considered, when no tax is collected separately, the gross amount has to be adopted to quantify the tax liability treating it as value of taxable service plus service tax payable. We find that this principle has been legislated in the following terms with effect from 18.4.06 in Section 67 (2) of the Finance Act, 1994 as amended : 67 (2). Where the gross amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position of law as to taxability of the sim cards and value to be considered for such tax was agitated before the various judicial forum and had to be settled by the apex Court in the case of Idea Mobile Communication Ltd. (supra), we are of view that the appellant could have entertained a bonafide belief as to the sale of sim cards is not a taxable activity. In the case of Bharti Airtel ltd. in final order No. ST/A/531/12 dated 04/07/2012 in appeal No. ST/426/2007 in an identical issue, we have set aside the penalties. Accordingly, we, by invoking the provisions of Section 80 of the Finance Act, 1994, set aside the penalties imposed by the lower authority. 9. The appeal is disposed of as indicated herein above. ( Operative order pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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