9911796707
TMI Blog2019 (6) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... operator. Therefore the entire exercise is also revenue-neutral. 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. Appeal allowed - decided in favor of appellant. - Service Tax Appeal Nos.41198 of 2016, 40649 of 2018, 40651 of 2018 - FINAL ORDER NOs. 40847-40849/2019 - Dated:- 13-6-2019 - MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) AND MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri S. Sankaranarayan, Advocate for the Appellant Shri M. Jagan Babu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich they were paid a certain amount as commission. The recharge coupon vouchers carry a maximum retail price inclusive of all taxes and on such price the DTH operator was already discharging service tax. The department was of the opinion that the commission received by the appellants from the DTH operators towards the sale of recharge coupons is taxable under the head Business Auxiliary Service . Accordingly, show cause notices were issued and the demands were confirmed by the lower authorities and upheld by the first appellate authority. Hence these appeals. 2. After hearing both sides, it is evident that the short question to be answered in these cases is whether the appellant is liable to discharge service tax on the commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present appeals, some portion of the appeals pertains to pre-2012 and some portion pertains to post-2012. Ld. counsel for the appellant argues that as their case is squarely covered by the aforesaid decisions of the Tribunal as well as Hon ble High Court of Allahabad and Hon ble High Court of Madras, the issue is no longer res integra and they are not liable to pay service tax on the commission which they received for selling recharge vouchers when the main DTH operator has already discharged service tax on the full value (M.R.P) of the recharge vouchers. 4. Ld. Departmental Representative reiterates the findings of the lower authorities and argues that the ratio of the aforesaid judgments was in the context of SIM card ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by them. It does not matter that the main service provider has discharged service tax on the full value of recharge coupon voucher. If the appellant pays the service tax, the main operator would be eligible to avail cenvat credit of the service tax discharged by the appellant. However, the tax liability per se does not get extinguished because the main operator has already discharged service tax on the M.R.P of recharge coupon voucher. 6. We have considered the arguments of both sides and perused the records. 7. The first contention of the Ld.D.R is that the judgments relied upon by the Ld. counsel for the appellant pertain to BSNL or other telecom SIM cards and not to recharge coupon vouchers of DTH operators. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
