TaxTMI 
TaxTMI 
2017 (9) TMI 678
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....viz., Bharat Sanchar Nigam Limited seeking refund of a sum of Rs. 5,35,643/- [Rupees Five Lakhs Thirty Five thousand Six Hundred and Forty Three Only] with subsequent interest at 12% p.a., representing the Sales Tax collected by the appellant for the sale of SIM Cards and activation charges for the mobile phone services provided by them. According to the plaintiff, they are a Government organisation engaged in providing mobile phone services. In the course of its business, it provides SIM Cards to its customers who avail its Telecommunication Services and also collect activation charges from them. While so, the appellants demanded Sales Tax on the value of the SIM Cards and activation charges. Though, according to the 1st respondent/plainti....
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....rds would attract Sales Tax. 4. It was also further contended that a sum of Rs. 3,97,050/- [Rupees Three Lakhs Ninety Seven thousand and Fifty Only] represents not only the Sales Tax payable on the sale of SIM Cards or the activation charges collected, but also sale of other materials. Therefore, the said factual issue can only be decided by the authorised Assessing Officers empowered to decide the said question under the Pondicherry General Sales Tax Act, 1967. 5. On the above pleadings, the learned trial Judge framed the following issues: 1. Whether the plaintiff is entitled for suit claim? 2. To what relief the parties are entitled ? 6. P.W-1-Joint Telecommunication Officer was examined on behalf of the plaintiff and Ex.A-....
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....he judgement in Bharat Sanchar Nigam Limited and Another -Vs- Union of India and Others reported in 2006 3 SCC 1, the learned counsel would contend that the Hon'ble Supreme Court has only laid down the guidelines and directed the Sales Tax Authorities to decide the question on the basis of the observations made therein. Therefore, according to the learned counsel, it is for the Sales Tax Authorities to decide as to whether the production of SIM Cards by the respondent would amount to sales or service. 10. Per contra, Mr.Prithvi Chopda, learned counsel appearing for the respondent would contend that the Hon'ble Supreme Court categorically pronounced that if it is the sale of SIM Cards and activation charges they are only in the na....
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.... cards are concerned, the issue is left for determination by the assessing authorities. (B) There may be a transfer of right to use goods as defined in answer to the previous question by giving a telephone connection. (C) The nature of the transaction involved in providing the telephone connection may be a composite contract of service and sale. It is possible for the State to tax the sale element provided there is a discernible sale and only to the extent relatable to such sale. (D) The issue is left unanswered. (E) The 'aspect theory' would not apply to enable the value of the services to be included in the sale of goods or the price of goods in the value of the service." 12. In the light of the rival submissions, t....
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.... Supreme Court in Bharat Sanchar Nigam Limited and Another .Vs. Union of India and Others reported in 2006 3 SCC 1 would also invite my attention to the judgement of the Hon'ble Supreme Court in Idea Mobile Communication Limited .Vs. Commissioner of Central Excise & Customs., Cochin reported in 2011 [23] S.T.R 433 wherein also a similar claim for payment of Sales Tax for the SIM Cards provided by the Idea Mobile Communication Limited was considered and had finally, following the judgement of the Hon'ble Supreme Court reported in 2006 3 SCC 1, it was concluded that no Sales Tax can be levied on the value of the SIM Cards and activation charges. The same view has been expressed by the Andhra Pradesh High Court in State of Andhra Prade....