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2015 (11) TMI 728 - AT - Service TaxValuation - whether the value of sim cards sold by the appellant herein to their mobile subscribers is to be included in taxable service under Section 65(105)(zzzx) of the Finance Act, 1994 or otherwise - Held that:- The ratio of the decision of the Tribunal [2008 (3) TMI 59 - CESTAT KOLKATA] would squarely apply in the case in hand and we hold that the appellant is eligible for cum-tax benefit and therefore service tax liability and interest thereof needs to be recalculated by the lower authority. This view has also been taken by the bench in appellants own case - For the limited purpose of re-quantification of the service tax liability, we remand the matter to the adjudicating authority to do so and direct the appellant to discharge such service tax as re-quantified along with interest - entire position of law as to taxability of the sim cards and value to be considered for such tax was agitated before the various judicial forum and had to be settled by the apex Court in the case of Idea Mobile Communication Ltd. (2011 (8) TMI 3 - SUPREME COURT OF INDIA ), we are of view that the appellant could have entertained a bonafide belief as to the sale of sim cards is not a taxable activity. Accordingly, we, by invoking the provisions of Section 80 of the Finance Act, 1994, set aside the penalties imposed by the lower authority. - Appeal disposed of.
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