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2024 (5) TMI 376 - CESTAT CHANDIGARHLevy of service tax - Business Auxiliary Services - appellant are purchasing SIM Cards/Recharge coupons from BSNL on full payment of the Purchase consideration and selling these SIM Cards/ Recharge coupons to its customers on a Principal to Principal basis on a profit Margin - HELD THAT:- It is found that the commission received by the appellant are for sale of SIM Cards and other products of BSNL. It is also found that the service tax has already been paid by the BSNL on the products sold by the appellant. This issue is no more res integra and has been settled by the various decisions of the Tribunal as relied upon by the appellant in the case of COMMISSIONER OF CGST AND CENTRAL EXCISE VERSUS M/S RAMA SALES AND SERVICES [2018 (3) TMI 556 - ALLAHABAD HIGH COURT], the Hon’ble Allahabad High Court held that purchase and sale of SIM Cards by franshisee/distributors appointed by telecom companies not leviable to Service Tax under category of Business Auxiliary Service especially when such companies already discharged service tax on gross amount of Such SIM cards and charging any further service tax on same amount would lead to double taxation. Revenue relied upon the decisions of the Hon’ble Apex Court in the case of IDEA MOBILE COMMUNICATION LTD. VERSUS CCE. & C., COCHIN [2011 (8) TMI 3 - SUPREME COURT]. It is pertinent to mention that this judgment of the Hon’ble Apex Court was considered by the Tribunal in the case of COMMISSIONER VERSUS DAYA SHANKAR KAILASH CHAND [2015 (8) TMI 1007 - ALLAHABAD HIGH COURT] and it was observed by the Tribunal that the issue involved in the said case before the Supreme Court was different than the issue involved in the present case. The impugned order is not sustainable in law and the same is set aside - Appeal allowed.
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