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2023 (10) TMI 812 - CESTAT AHMEDABADLiability of service tax - commission received against the sale of SIM card on MRP - in such MRP the commission is already included and on that MRP the principal i.e. the mobile company has discharged the service tax - whether the appellant being a commission agent is liable to pay service tax on the commission received by them from the mobile Company in the present case, M/s. Vodafone Essar Gujarat Limited.? HELD THAT:- Since the mobile companies admittedly paid the the service tax on gross MRP out of that only commission is paid, demand on service tax is double demand on the same amount. This issue has been considered in various judgments - reliance can be placed in COMMISSIONER OF CENTRAL EXCISE, MEERUT VERSUS MORADABAD GAS SERVICE [2014 (1) TMI 199 - CESTAT NEW DELHI] where it was held that Inasmuch as there is no dispute about the fact of payment of entire service tax by BSNL on the full value of SIM cards/recharge coupons, we are of the view that Commissioner (Appeals) has rightly set aside the confirmation of demand. The demand on commission for sale of SIM cards is not sustainable, hence the impugned order is set-aside - appeal allowed.
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