2013 (6) TMI 339 - CESTAT NEW DELHI

Levy of ST on sale of SIM Cards of BSNL - extended period of limitation - Held that:- Interestingly the services of selling agent or a distributor of SIM cards or recharge coupon vouchers have been exempted from service tax vide entry No. 29 in Notification 25/2012-ST dated 20-06-12. So the special nature of services in such cases is recognized though only recently.

Though the correct procedure for discharge of the service “tax liability by the two parties is that the distributors raise bills for commissions that is due to them along with service tax and BSNL takes Cenvat credit of tax paid by distributors for discharging liability on the telecommunication service provided by BSNL, such procedure dos not result in extra realization of Revenue. Considering the special nature of the impugned activities and the fact that it can be easily verified that full taxable value of the service provided by BSNL to customers is subjected to tax, we are of the view that there is no case to undo decisions already taken by the Tribunal in this regard

This issue has lost relevance for the future because of exemption under Notification 25/2012-ST-S. No. 29 for this type of service. - Demand set aside - Decided in favor of assessee.