TMI Blog2016 (2) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... SIM cards without appreciating the fact that the SIM cards are marked with an MRP on which tax is collected in full from the customer. Therefore, the commission paid to appellants is also included in the value on which tax has been collected from the customer. The customer is, consequently, the recipient of the full value of services from none other than M/s Bharat Sanchar Nigam Ltd; thus, it is no different from the other two products. As commission system and sale methodology in relation to SIM cards is the same as the other two products, we, for the reason elaborated supra, set aside the impugned orders and allow both the appeals with consequential relief. - Decided in favor of assessee. - Appeal No: ST/59396 & 59770/2013 & Applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards and ₹ 3,78, 637 in relation to the other products and M/s Narota Ram Goyal Sons was held liable to tax of ₹ 8,64,785.01 on services related to SIM cards and ₹ 3,17,819 in relation to the other products. In addition, the appellants were held liable to interest and penalties under section 77 and 78 of Finance Act, 1994. In the impugned order, Commissioner (Appeals) has confirmed the findings of the lower authorities in relation to tax on commission earned on SIM cards while dropping the demands relating to the recharge coupons and top-up cards. 4. In the grounds of appeal it is contended that the tax liabilities had been discharged by M/s Bharat Sanchar Nigam Ltd in full on the MRP value of SIM-cards and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Central Excise Service Tax, Lucknow [2013 (30) STR 428 (Tri.Del.)]. The Hon ble High Court of Allahabad has upheld these two decisions. 7. We find that this contrived distinction attempted in the impugned order by the first appellate authority does not conform to logic or to any commercial distinction. On the contrary, the three decisions cited above are clear in laying down the principle that the user of the telephony services is the service recipient and tax liability on the gross value charged from such customer, whether first-time purchaser of SIM card or subsequent purchaser of other cards, is collected from the customer and deposited to government account by the principal. An attempt has been made to catalogue the various ..... X X X X Extracts X X X X X X X X Extracts X X X X
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