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TMI Blog2019 (6) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Central Excise (Appeals-I), Coimbatore. 2. ST/40649/2018 Order-in-Appeal No.9 & 10/2018 dated.29.01.2018 Commissioner of GST & Central Excise (Appeals), Madurai. 3. ST/40651/2018 Order-in-Appeal No.9 & 10/2018 dated 29.01.2018 Commissioner of GST & Central Excise (Appeals), Madurai. The appellants herein are engaged in activities of rendering services to DTH broadcasting service providers such as, Sun Direct Private Ltd. Appellant installs the DTH instruments including cards therein and activates the same for which they receive service charges and pay applicable service tax on such charges. In addition, they also sell recharge coupon vouchers received from DTH operators for which they were paid a certain amount as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such M.R.P. The department's appeal against this aforesaid order was dismissed by the Hon'ble High Court of Allahabad [Commissioner Vs G.R. Movers - 2015 (37) STR J132 (All.)]. Ratio of this decision was followed by the Hon'ble High Court of Madras in the case of Commissioner of Central Excise Coimbatore Vs Bharat Cell -2015 (40) STR 221 (Mad.). The ratio was also followed in the case of CCE Meerut Vs Moradabad Gas Service - 2013 (31) STR 308 (Tri.-Del.). With effect from 20.06.2012, the Ministry have themselves exempted services of selling agent or distributors of SIM cards or recharge coupon vouchers from the whole of service tax vide Notification No.25/2012-ST dt.20.06.2012. In the present appeals, some portion of the appeals pertains t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by this exemption notification post-2012. He further argues that there are two types of services. A service rendered by DTH operator to the ultimate customer whose value is determined by the price of the recharge coupon vouchers. This service is not in dispute. What is in dispute is whether the appellant has rendered a service to the DTH operator and received a commission and whether such commission would amount to rendering 'Business Auxiliary Service'. A plain reading of the definition of 'Business Auxiliary Service' squarely covers the activities of the appellant and therefore the service tax has to be discharged on such amount of commission received by them. It does not matter that the main service provider has discharged service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax on such commission, the main DTH operator could have availed cenvat credit of the same thereby proportionately reducing the amount paid in cash by the DTH operator. Therefore the entire exercise is also revenue-neutral. In view of the above, we find that the issue is no longer res integra. On the SIM cards, recharge coupons etc., where the service tax has been paid on the M.R.P by the main operator the commission agent / distributor need not pay service tax on the commission received by him because commission also forms part of the M.R.P. on which service tax has already been discharged. 8. Respectfully following the ratio of the aforesaid decisions of the Principal Bench of the Tribunal, Hon'ble High Court of Allahabad and Hon'ble H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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