Rectification granted in appeal on service tax for selling SIM cards to BSNL

The Tribunal allowed the rectification of a mistake in the final order, correcting the parties' positions in an appeal regarding service tax on commission for selling SIM cards to BSNL. Relying on precedents, including a Supreme Court judgment and previous decisions, the Tribunal granted the appeal, setting aside the impugned order and providing consequential relief to the appellants.

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Issues involved: Rectification of mistake in the final order.

Analysis:
The judgment pertains to an application for rectification of a mistake in the final order dated 26.05.2016, where the Tribunal erroneously referred to the respondent as the appellant instead of the Revenue. The mistake was also made in recording the outcome of the appeal. The Tribunal acknowledged the errors pointed out by the applicant and allowed the rectification of the mistake. The corrected order clarified that the Revenue was appealing against the dropping of service tax on commission received for selling SIM cards to BSNL by the respondent.

The issue at hand was whether the service tax on the commission received for selling SIM cards to BSNL should be dropped or not. The Tribunal cited a previous decision in the case of Daya Shankar Kailash Chand, which was upheld by the Hon'ble High Court of Allahabad. The Tribunal referred to a Supreme Court judgment in the case of India Mobile Communication Ltd. to distinguish the issue at hand from the one addressed by the Supreme Court. The Tribunal also considered a decision in the case of Martend Food & Dehydrates Pvt. Ltd. where it was held that the activity of purchase and sale of SIM cards belonging to BSNL does not amount to providing business auxiliary services. Based on these precedents, the Tribunal set aside the impugned order and allowed the appeal with consequential relief to the appellants.

In conclusion, the rectification of the mistake in the order was allowed, and the corrected order clarified the position of the parties involved in the appeal. The Tribunal's decision was based on the interpretation of relevant case law and the specific circumstances of the case regarding the service tax on commission received for selling SIM cards to BSNL.

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