Double service tax on SIM cards and recharge coupons is unsustainable when tax is already paid on full transaction value.

Where service tax had already been discharged by BSNL on the full face value of SIM cards and recharge coupons, a second levy on the distributor under business auxiliary service or business support service was not justified. The Tribunal relied on its earlier ruling on similar facts and held that duplication of tax on the same transaction value was unsustainable. The demand against the distributor was therefore set aside and the Revenue's appeal failed.

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Issues: Whether, when BSNL had already discharged service tax on the full face value of SIM cards and recharge coupons, the respondent-distributor could again be made liable to service tax on the same value under business auxiliary service or business support service.

Analysis: The Tribunal noted that the appellate authority had set aside the demand on the ground that service tax had already been paid by BSNL on the full face value of the SIM cards and recharge coupons. It further relied on its earlier decision in similar facts, where it had held that a second levy of service tax on the distributor was not justified once tax had already been discharged on the full value of the transaction.

Conclusion: The demand against the respondent was not sustainable and the Revenue's appeal was rejected.

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