TaxTMI 
TaxTMI 
2012 (11) TMI 290
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.... and sales tax was paid on the value of SIM cards and separately another bills were raised for activation charges on which service tax was paid. In the case of pre-paid connections the same type of transactions were done through their agents. Sales tax was paid on the value of SIM cards and on such value service tax was not paid. 2. Revenue was of the view that the sale of SIM card was necessary for providing the service that the appellants were providing and without the sale of such SIM cards no service could be rendered. Revenue was of the view that the essential nature of their activity was that of a service and not that of sale of SIM cards. Therefore the Appellants should have paid service tax on the value billed to the customers....
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....at Idea Mobile Communication Ltd. v. CCE - 2010 (20) S.T.R. J77 (S.C.). He points out the appellants were never disclosing to the department the fact that they were charging separately for value of SIM card from customer and were not paying service tax on it and therefore the extended period of 5 years could be invoked for issuing the demand and thus the demand issued and confirmed is legal and proper. 5. We find that the basic issue involved in the dispute is one of legal interpretation of constitutional provisions. The Hon'ble Apex Court itself formulated its interpretation after a series of decisions on the issue. There has been genuine doubt whether value of SIM cards would form value of service rendered we quote paras 80, 82 and ....
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....n of India - (1989) 3 SCC 634 - "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. They 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." No one denies the legislative competence of States to levy sales tax on sales provided that the necessary concomitants of a sale are present in the transaction and the sale is distinctly discernible in the transaction. 82. For the same reason the Centre cannot include the value o....