TaxTMI 
TaxTMI 
2008 (9) TMI 292
X X X X Extracts X X X X
X X X X Extracts X X X X
....e heard Asstt. Solicitor General appearing for the appellant, counsel appearing for the respondent and Special Government Pleader appearing for the State Government. 2. The question involved is whether the value of SIM cards sold by the respondent to their mobile subscribers is to be included in taxable service under section 65(105)(zzzx) of the Finance Act, 1994 which provides for levy of service tax on telecommunication service or it is taxable as sale of goods under the Sales Tax Act. Different mobile operators took divergent stand in the matter before the departmental authorities. While BPL Mobile Services, a leading mobile operator, took the stand that SIM card has no intrinsic sale value and is supplied to the customers for providing....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... card has no intrinsic sale value and it is supplied to customers to provide telephone service to them. So much so, the assessing authority under the Sales Tax Act dropped the proceedings to levy sales tax on SIM cards. So far as the respondent is concerned, it is not known whether returns are filed conceding turnover and liability under the Act, or whether assessments are pending. In any case, the Assessing Officer in the case of respondent cannot take a stand different from the stand taken by another Assessing Officer in the case of BSNL (supra) and BPL mobile services. Consequently, no assessment for sales tax could be made on the sale value of SIM cards supplied by the respondent to their customers, no matter whether they have filed ret....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioning of this item in the service provided by the respondent. Admittedly SIM card is a computer chip having its own SIM number on which telephone number can be activated. SIM card is a device through which customer gets connection from the mobile tower, In other words, unless it is activated, service provider cannot give service connection to the customer. Signals are transmitted and conveyed through towers and through SIM card communication signals reach the customer's Mobile instrument. In other words, it is an integral part required to provide mobile service to the customer. Customer cannot get service without SIM card and it is an essential part of the service. SIM card has no intrinsic value or purpose other than use in mobile pho....