TMI Blog2017 (12) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... full MRP of ERC, which was further sold by the respondent, service tax not attracted - appeal dismissed - decided against Revenue. - Service Tax Appeal No. 10/2011-DB - Final Order No. 58104/2017 - Dated:- 28-11-2017 - Shri S.K. Mohanty, Member (Judicial) And Shri B. Ravichandran, Member (Technical) Shri Sanjay Jain, AR for the appellant by none (on merit) for the respondent. ORDER Per B. Ravichandran The Revenue is in appeal against the order dated 28.09.2010 of Commissioner (Adjudication), Service Tax, New Delhi. 2. The brief facts of the case are that the respondents are engaged in the business of trading in Electronic Recharge Coupons (ERCs) and also in collection of payment of post paid bills for various t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s actually acting as a bridge between the subscriber and the telecom operator. The amount received or retained by the respondent is for such activity. Relying on the decision of the High Court of Kerala in Vodafone ESSAR Cellular Limited 2010 TIOL-655-HC-Kerala IT and also the decision of the Hon ble Karnataka High Court in Bharti Televentures Ltd. 2017 (49) STR 129 (Kar.). Ld. AR submitted that there is no sale of any goods in this arrangement. The delivery of SIM cards or ERCs is only for rendering service to ultimate subscribers. The distributor is only the middleman arranging customers or subscribers for the assessee. The distribution agreement clearly indicate that it is for the distributor to enroll the subscribers with required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te that the dispute involved in the present case was earlier subject matter of decision by this Tribunal. In Chotey Lal Radhey Shyam - 2016 (44) STR 266 (Tribunal-Allahabad), Goyal Automobiles 2016 (43) STR 268 (Tribunal-Delhi) and G.R. Movers - 2013 (30) STR 634 (Tribunal), the Tribunal held that when the telecom operators paid service tax on the full MRP of such ERCs/SIM cards, there is no liability on the appellant, who are involved in sale of such ERC/SIM cards to the subscribers. We also note that the said view has been upheld by the Hon ble Allahabad High Court in 2015 (37) STR J-132 as well as Hon ble Madras High Court in Bharti Televentures Ltd. 2015 (40) STR 221 (Madras). 6. We note that in the present case, the telecom oper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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