9911796707
TMI Blog2024 (10) TMI 1247X X X X Extracts X X X X X X X X Extracts X X X X ..... - SUPREME COURT ] wherein the Hon ble Apex Court while examining the imposition of sales tax on the usage of SIM, held that sales tax can be imposed. The question of SIM card be goods was left to be further examined. However, in Idea Mobile s case , the Hon ble Apex Court has found that the SIM Cards to be never sold as goods independent from services provided. In view thereto, independently the SIM Cards cannot be termed as goods for the purpose of Octroi. There are no hesitation to hold that the SIM Cards which have been distributed in various Municipal Councils for the relevant period were not leviable to Octroi. Accordingly, the present writ petition is allowed and the notifications dated 26.07.2001(Annexure P-6), 08.08.2001 (Annexure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder: 86. In that case Escotel was admittedly engaged in selling cellular telephone instruments, SIM cards and other accessories and was also paying Central Sales Tax and Sales Tax under the Kerala General Sales Tax Act, 1963 as applicable. The question was one of the valuation of these goods. The State Sales Tax Authorities had sought to include the activation charge in the cost of the SIM card. It was contended by Escotel that the activation was part of the service on which service tax was being paid and could not be included within the purview of the sale. The Kerala High Court also dealt with the case of BPL, a service provider. According to BPL, it did not sell cellular telephones. As far as SIM cards were concerned, it was submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spects doctrine. That doctrine merely deals with legislative competence. As has been succinctly stated in Federation of Hotel Restaurant Assn. of India v. Union of India: (SCC pp. 652-53, paras 30-31) ... 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. * * * There might be overlapping; but the overlapping must be in law. The same transaction may involve two or more taxable events in its different aspects. But the fact that there is overlapping does not detract from the distinctiveness of the aspects. Wherein the Hon ble Apex Court while examining the imposition of sales tax on the usage of SIM, held that sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of SIM cards forms part of the activation charges as no activation is possible without a valid functioning of SIM card and the value of the taxable service is calculated on the gross total amount received by the operator from the subscribers. The Sales Tax authority understood the aforesaid position that no element of sale is involved in the present transaction. Thus, the Hon ble Apex Court has found that the SIM Cards to be never sold as goods independent from services provided. In view thereto, independently the SIM Cards cannot be termed as goods for the purpose of Octroi. 6. The High Court of Judicature at Bombay, in Writ petition No. 7926 of 2006, titled as, Bharat Sanchar Nigam Limited Vs. The State of Maharashtra , decided on 09.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (towards SMS, ring tones, download music etc.) are not goods . It relied upon not only the judgment in Idea Mobile Communication but also the judgments of this Court in Bharat Sanchar Nigam Ltd. vs. Union of India [2006 (2) SCR 8231, Associated Cement Companies Ltd. vs. Commissioner of Customs . [2001 (1) SCR 608] and Tata Consultancy Services vs. State of A.P. (relied upon by the revenue). The High Court, however, remitted the matter for consideration for ascertainment of facts relating to levy of sales tax on non-refundable deposits and refundable deposits. It also held that the transactions relating to telephone sets, modems and caller IDs instruments are subject to sales tax levy. Having considered submissions of the learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
