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TMI Blog2018 (8) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... , TECHNICAL MEMBER MR. M.S. NAGARAJA, ADVOCATE T. RAJESWARA SASTRY & ASSOCIATAES FOR THE APPELLANT MR. RAJESH KUMAR, CA HIRAGANGE & ASSOCIATES MR. PAKSHIRAJAN, AR FOR THE RESPONDENT ORDER Per: P. Anjani Kumar The appellants are engaged in distribution of pre-paid cards and recharge coupons purchased from BSNL. The department has contended that the services undertaken by the appellants fall under sub-clause (1) of Clause 19 of Section 65 of the Finance Act, as "Business Auxiliary Services". The appellants were issued a show-cause notices demanding a service tax on the commission received from BSNL. The show-cause notices were confirmed by the original adjudicating authority and the appellate authority and hence, these appeals. 2. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Somaya Marketing 01.02.2009 to 31.03.2011 Rs.1,83,874/- Rs.1,83,874/- 14 ST/21546/2015 CCE vs. Shri V. M. Nayak Benne 01.04.2011 to 31.03.2012 Rs.22,14,860/- Rs.22,14,860/- 15 ST/21750/2017 M/s. Bhoopalam Marketing Services Pvt. Ltd. 2010-11 to 2011-12 Rs.5,61,000/- Rs.5,61,000/- 3. The appellants contended that the impugned orders confirmed the demand considering the nature of activity i.e., of promotion and marketing whereas the actual activity undertaken by them is trading of SIM cards and recharge coupons. It is not denied that the appellants have received incentives and discounts in relation to the sale of the above. The appellants further submitted that BSNL had paid service tax on the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e findings of the original adjudicating authority as well as the appellate authority. 5. We find that the instant case is squarely covered by various case laws cited by the appellants. We find that CESTAT has continuously held that telecom operators discharging service tax on the whole MRP value of SIM cards and recharge cards there could be no further service tax liability on the persons who are dealing / selling the said SIM cards or recharge cards to the public. The ratio adopted was also upheld by Hon'ble Supreme Court in 2015 (37) STR J132 as well as by Hon'ble Madras High Court in Bharti Televentures Ltd.: 2015 (40) STR 221 (Mad.). Coming to the contention of the learned DR that there is a specific contract between BSNL and the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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