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2018 (8) TMI 960 - AT - Service TaxBusiness Auxiliary Services - distribution of pre-paid cards and recharge coupons purchased from BSNL - case of appellant is that BSNL had paid service tax on the entire value of the telecom products including the amount of commission paid to the franchisee/appellants - Held that:- CESTAT has continuously held that telecom operators discharging service tax on the whole MRP value of SIM cards and recharge cards there could be no further service tax liability on the persons who are dealing / selling the said SIM cards or recharge cards to the public. When the appellants have received incentives and discounts in the course of their trading activity, they are not liable to pay service tax. Another case of Revenue is that there is a specific contract between BSNL and the appellants - Held that:- Similar is the issue with all the service providers like BSNL and other operators and the respective dealers as has been elaborately discussed in Tribunal’s Delhi order CCE vs. Moradabad Gas Services [2014 (1) TMI 199 - CESTAT NEW DELHI], where it was held that where the principal has already paid service tax on the full value of the SIM cards, franchise cannot be called upon to pay tax again on the same transaction on the ground that his activity is separately liable to service tax under the category of BAS. Appeal allowed - decided in favor of appellant.
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