TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether activation charges collected in connection with cellular mobile telephone services constitute goods or sale so as to be assessable to sales tax under the Haryana General Sales Tax Act, 1973.
Analysis: The governing principle was taken from the Supreme Court's ruling that electromagnetic waves or radio frequencies are not goods and that, in telecommunication, goods are limited to handsets supplied by the service provider. On that footing, the Court held that activation charges, though connected with the service, do not answer the description of goods and therefore cannot be treated as sale for sales tax purposes. The levy could not be sustained merely by including the service component in the taxable sale value.
Conclusion: Activation charges are not goods and are not liable to sales tax under the Act; the issue is decided in favour of the assessee.
Final Conclusion: The assessment and revisional orders were quashed to the extent they included activation charges in the taxable turnover, and the writ petition was allowed.
Ratio Decidendi: In telecommunication transactions, only the discernible sale element of goods can be taxed, and service-related charges that do not constitute goods cannot be brought within the sales tax net.
TaxTMI 
