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2019 (12) TMI 930 - HC - VAT and Sales TaxLevy of Entry Tax - applicant is a dealer in regard to SIM Cards which are the essential part of services provided by the applicant - scope of section 3(1) of the Entry Tax Act, 1976 - HELD THAT:- The issue decided in the case of M/S. IDEA CELLULAR LTD. VERSUS THE ASSTT. COMMISSIONER OF COMMERCIAL TAX, LTU, INDORE AND FIVE OTHERS AND M/S. BHARTI AIRTEL LTD. VERSUS THE DY. COMMISSIONER OF COMMERCIAL TAX DIV-3, INDORE AND FIVE OTHERS [2017 (1) TMI 336 - MADHYA PRADESH HIGH COURT] where it was held that Even in the case of replacement of SIM Card, the value of replacement in respect of SIM cards forms part of the activation charges, as no activation is possible without a valid functioning of SIM card and the value of taxable service is calculated on the gross amount received from the operator from the subscriber and, therefore, once it has been held that no sales tax can be charged for providing a SIM, the question of charging it on replacement of a SIM, does not arise. This Court is of the considered opinion that the SIM Cards, as they are not the goods, do not fall under the ambit of Sec. 3(1) of the Entry Tax Act, 1976 and, therefore, the questions of law are answered in favour of the assessee - question of imposition of Entry Tax on SIM Cards does not arise. Reference allowed.
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