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2016 (11) TMI 670 - HC - VAT and Sales TaxLevy of VAT on mobile (telecom) services - Airtime Charges - Service Income - Miscellaneous Income - SIM Cards - Held that: - The Assessing Officer has referred to the petitioner's objection, wherein, the petitioner has stated that the Airtime Charges are collected from the subscribers towards Extending Mobile Telephone Services by which subscribers can communicate to others while on the move and receive calls as well, Air time charges represent call charges for originating by mobile subscriber. The tariff is dependent on the plan under which a subscriber has enrolled on the network. The call charges per call will depend on plan tariff and call durations. This is only a service and there is no transfer of goods or sales to attract the provisions of the TNGST Act - the conclusion of the Assessing Officer under the said head, which is termed as "Service Income" by the petitioner calls for interference. Miscellaneous Income - Held that: - the petitioner is ready and willing to file an Appeal after effecting pre-deposit. This submission is taken on record and the Court will grant time to file an Appeal - liberty is granted to the petitioner to file an Appeal before the Appellate Authority and if the Appeal is filed within a period of 30 days from the date of receipt of a copy of this order, the Appellate Authority shall entertain the Appeal without reference to limitation, as these Writ Petitions have been pending before this Court, since 2010 onwards. SIM Card - Held that: - the petitioner has stated that no sales tax can be charged on the value of SIM Card and in the petitioner's case since the SIM is merely incidental to the service, the petitioner has also given the details of the purchases effected by their vendors viz., M/s.Gemplus India P Ltd., and has also given the cost incurred by them and other details. This aspect of the matter, though was verbatim extracted by the Assessing Officer while completing the Assessment, erroneously stated that there are no records available. Even assuming if there are no records, nothing prevented the Assessing Officer to direct the petitioner to produce necessary records. Therefore, the Assessment on said head, calls for interference - the respondent shall afford an opportunity of personal hearing to the petitioner and redo the Assessments. Petitions disposed off.
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