2017 (8) TMI 221

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....s. 41298-41305 / 2017<br>Service Tax<br>&nbsp; Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Rabeen Jayaram, Advocate for the Appellants Shri K.P. Muralidharan, AC (AR) for the Respondent ORDER Per Bench The issue involved in all the appeals being identical, were heard together and are disposed by this common order. 2. The appellants are proprietary concerns and have been appointed as distributors of M/s. Vodafone Cellular Limited (herein after referred to as M/s. VCL) for the distribution for recharge vouchers, electronic coupons and starter packs of M/s. VCL. The invoices are raised by M/s. VCL to appellants on the starter packs and recharge vouchers with a discount o....

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.... only to purchase and sell the starter packs and recharge vouchers. Furthermore that, M/s. VCL has discharged service tax on the entire MRP. This being so, the demand of service tax on the margin earned by the appellants is unsustainable. He also submitted that the issue stands covered by the judgment of the Hon'ble High Court of Madras in the case of Commissioner of Central Excise, Coimbatore Vs. Bharat Cell 2015 (40) STR 221 (Mad.) as well as the decision in the case of Daya Shankar Kailash Chanda Vs. Commissioner of Service Tax 2013 (30) STR 428 (Tri. Del.) which was upheld by the Hon'ble High Court of Allahabad as reported in 2014 (34) STR J99 (All.). That similar view was taken by the Hon'ble High Court of Kerala in the case of Commiss....

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....e issue whether the sale and purchase of SIM cards, recharge coupons, starter packs would amount to business auxiliary service has been settled by the judgment in the case of Commissioner of Service Tax Vs. Bharat Cell (supra) wherein the ratio of the decision laid down in GR Movers reported in 2013 (30) STR 634 (Tri. Chennai) was referred. The other decisions of the Hon'ble High Courts of Allahabad as well as Kerala have taken similar view. The demand also includes the amount reflected in the credit notes issued by M/s. VCL to appellant. The appellant has contended that these are nothing but reimbursable expenses. Such issue also stands covered by the jurisdictional High Court in the case of Sangamitra Services Agency (supra). The demand i....