2015 (5) TMI 65

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in providing telephone services including cellular phone services to the subscriber within India under licence from the Department of Telecommunications and were registered with the Service Tax authorities at Mumbai and were discharging service tax liabilities. Respondents were providing prepaid services to their subscribers of cellular phone services and collected payment for such services through prepaid cards and Recharge vouchers. The prepaid cards and Recharge vouchers were sold in physical form through distributors, retailers and electronically through two Companies. MRP is printed on these Recharge vouchers and the prepaid coupons. It is alleged in the show-cause notice that there was a short payment of tax as the respondent had not....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r Telephone Co. from its subscribers towards the sale of SIM Cards will form part of the taxable value and the Service Tax liability is to be calculated on gross total amount received from subscribers. 4. Learned Counsel appearing on behalf of the respondent would submit that very same issue was agitated before the Tribunal in the BPL Mobile Cellular Ltd. (supra). He would submit that the Co-ordinate bench of the Tribunal has categorically held in favour of the assessee and produces copy of the said order and also the copy of the order wherein the Hon'ble Apex Court has dismissed the civil appeal filed by Revenue against such order. 5. We have considered the submissions made at length by both the sides and perused the records. 6. The....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ice-provider) is the amount received by them from dealers/distributors and nothing extra was charged by the appellants. Admittedly, service tax was paid on this amount. There are a few elements specified in the Explanation to Section 67, as includible in the value of taxable service. The Revenue has no case that any of these elements is applicable to the appellants. The Tribunal's decision in Tempest Advertising (supra) is clearly in support of the appellants. 6. It is true that the service rendered by the appellants by way of sale of pre-paid SIM cards was ultimately received by the subscribers. However, where the law prescribes the value of taxable service to be the gross amount charged by the service-provider, service tax can be lev....