TaxTMI 
TaxTMI 
2026 (2) TMI 1000
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Sridharan, learned counsel for the petitioner and Mr. T. Chaitanya Kiran, learned Assistant Government Pleader representing Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax. Perused the record. 2. The present writ petition has been filed by the petitioner under Article 226 of Constitution of India assailing the assessment order in Form VAT 305 dated 24.04.2010 passed by respondent No. 1 for the assessment year 2006-07. 3. The question of law involved is whether the SIM Card which is showed by the petitioner establishment would be leviable to tax under the provisions of the VAT Act. The said issue, no longer is res integra as it has been in very categorical terms held by the Hon'ble Supreme Court in the case of Id....
X X X X Extracts X X X X
X X X X Extracts X X X X
....funded as the case may be or, the assessee has to follow the law as may be applicable. But we cannot accept a position in law that even if tax is wrongly remitted that would absolve the parties from paying the service tax if the same is otherwise found payable and a liability accrues on the assessee. The charges paid by the subscribers for procuring a SIM Card are generally processing charges for activating the cellular phone and consequently the same would necessarily be included in the value of the SIM Card. 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 t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Andhra Pradesh (DB) in 2012 25 STR 321 (A.P.). This Bench also had an occasion of taking up one similar writ petition i.e., W.P.No.5675 of 2004 which stood decided on 24.01.2024, wherein the aforesaid judgments were taken note of and in the light of the aforesaid judgments, we had allowed the writ petition holding that the allotment of SIM Cards to the subscribers would not attract sales tax under the VAT Act. For ready reference, the provisions of certain portions of the said order of the Division Bench are reproduced hereunder: "8. As regards the others issue are concerned, a Division Bench of High Court of Andhra Pradesh in the case of M/s. Bharath Sanchar Nigam Ltd. (supra), br. referring to the aforesaid judgments of the Ho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l Manager Vs. The State of Andhra Pradesh, wherein the Hon'ble Supreme Court held as under: "In the present case, the High Court held that SIM Cards, Rechargeable Coupons, Fixed Monthly Charges and Value-Added Services (towards SMS, ring tones, download music etc.) are not "goods". It relied upon not only the judgment in "Idea Mobile Communication" but also the judgments of this Court in "Bharat Sanchar Nigam Ltd. vs. Union of India [2006 (2) SCR 823], Associated Cement Companies Ltd. vs. Commissioner of Customs" [2001 (1) SCR 608] and Tata Consultancy Services vs. State of A.P." [2005 (1) SCC 308]. The High Court, however, remitted the matter for consideration for ascertainment of facts relating to levy of sales tax o....