TMI Blog2018 (3) TMI 1659X X X X Extracts X X X X X X X X Extracts X X X X ..... idered by the Hon'ble Supreme Court in the case of Idea Mobile Communication Ltd Vs Commissioner of Central Excise and Customs, Cochin, [2011 (8) TMI 3 - SUPREME COURT OF INDIA], where it was held that there was no element of sale involved in the sale of sim cards or recharge vouchers. Petition allowed. - W.P.No. 12611 of 2006 And W.P.M.P.No.14203 of 2006 - - - Dated:- 16-3-2018 - MR T. S. SIVAGNANAM, J. For The Petitioner : Mr. N. Murali For The Respondents : Mr.M.Hariharan And Mr. A. P. Srinivas ORDER Heard Mr N Murali, learned counsel for the petitioner and Mr M Hariharan, learned Additional Government Pleader for the respondents 1 and 2 and Mr A P Srinivas, learned counsel for the third respondent 2 This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt company i e , M/s Idea Mobile Communication Ltd The aforesaid decision of the Kerala High Court was under challenge in this Court in the case of BSNL Vs Union of India reported in [2006] 3 SCC 1 The Supreme Court has framed the principal question to be decided in those appeals as to the nature of transaction by which mobile phone connections are enjoyed The question framed was, is it a sale or is it a service or is it both In paragraphs 86 and 87 of the Judgment the Supreme Court has held thus: - 86 In that case Escotel was admittedly engaged in selling cellular telephone instruments, SIM cards and other accessories and was also paying Central sales tax and sales tax under the Kerala General Sales Tax Act, 1963 as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities to levy sales tax thereon There is insufficient material on the basis of which we can reach a decision However we emphasise that if the sale of a SIM card is merely incidental to the service being provided and only facilitates the identification of the subscribers, their credit and other details, it would not be assessable to sales tax In our opinion the High Court ought not to have finally determined the issue In any event, the High Court erred in including the cost of the service in the value of the SIM card by relying on the aspects doctrine That doctrine merely deals with legislative competence As has been succinctly stated in Federation of Hotel Restaurant Assn of India Vs Union of India: [SCC pp 652-53, pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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