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2018 (8) TMI 71 - HC - VAT and Sales TaxLevy of Sales Tax - sale of voice transmission service - goods or not - sales or not - tax was imposed on the ground that they goods under Section 2(5) of the said Act - According to the petitioners, the petitioner's voice communication service is only a service and eligible to “Service Tax” as laid down in the Finance Act, 1994 and therefore they got themselves registered with the Central Excise Authorities and the petitioners are regularly depositing service tax. Held that:- By the said judgment of the Hon'ble Apex Court in the case of Bharat Sanchar Nigam Limited and Another V/s. Union of India and Others [2006 (3) TMI 1 - SUPREME COURT], the nature of transaction by which the mobile connections are enjoyed has been put to rest by holding that it is not a sale but it is a service for if it would have been sale then the State legislature would have been competent to levy sales tax on the said transaction by invoking entry 54 of List II of the Seventh Schedule to the Constitution. However, it was only service then the Central Government alone would be entitled to levy service tax under Entry 97 List I - The said judgment therefore has settled the issue that goods do not cover the electromagnetic waives or radio frequencies for the purposes of Article 366(29A)(d) and the goods in telecommunication are limited handset used for permissions of voice through airwaves. The impugned notices issued by the Sales Tax Officer (Enforcement), Mazagaon, Mumbai i.e. respondent No.3 for imposition of tax from voice transmission service cannot be sustained and are liable to be quashed and set aside - petition allowed - decided in favor of petitioner.
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