TaxTMI 
TaxTMI 
2024 (10) TMI 1247
X X X X Extracts X X X X
X X X X Extracts X X X X
....tate of Punjab are leviable to Octroi by the various Municipal Councils, when the same are being sold in their municipal limits. 2. Heard the learned counsel for the parties and also examined the provisions with their assistance. 3. "Octroi" has been defined as a cess without refunds on the entry into a city or municipality of goods for consumption, use or sale therein. As per the Municipal Account Code, 1930, any goods which are brought within the limits of any Municipality, would be liable for a cess amount which would be collected as a 'Octroi'. 4. The question therefore, however requires to be examined is whether SIM Card can be treated as "goods". The said question is no more res intergra, keeping in view the judgments passed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ates. In determining the issue, however the assessing authorities will have to keep in mind the following principles: if the SIM card is not sold by the assessee to the subscribers but is merely part of the services rendered by the service providers, then a SIM card cannot be charged separately to sales tax. It would depend ultimately upon the intention of the parties. If the parties intended that the SIM card would be a separate object of sale, it would be open to the Sales Tax Authorities to levy sales tax thereon. There is insufficient material on the basis of which we can reach a decision. However we emphasise that if the sale of a SIM card is merely incidental to the service being provided and only facilitates the identification of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....curity data and memory to store personal numbers and it stores information which helps the network service provider to recognize the caller..... 19. There cannot be any dispute to the aforesaid position as the appellant itself subsequently has been paying service tax for the entire collection as processing charges for activating cellular phone and paying the service tax on the activation. The appellant also accepts the position that activation is a taxable service. The position in law is therefore clear that the amount received by the cellular telephone company from its subscribers towards SIM Card will form part of the taxable value for levy of service tax, for the SIM Cards are never sold as goods independent from services provid....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to levy sales tax. This principle cannot fall within the domain of the authorities who are empowered to levy octroi, as octroi is not dependent upon the price at which the commodity is sold, but depends on the price at which the commodity is purchased and brought within the Municipal Corporation limits of a particular place. Octroi cannot be levied on the talk time which would be a subject of the choice of a customer. 11. Considering the above, we find that, the reason assigned by the Corporation to levy octrol on the price at which the petitioner may intend to sell its SIM card, provided it is sold as a distinct object of sale, is an unsustainable ground and is not supported by any provision of law which has been cited before us.....