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TMI Blog2023 (12) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... e-seller of BSNL's cellular products like SIM Cards, recharge vouchers, ITC Card etc. The Appellant purchases the said products from BSNL at wholesale prices and sells them at retail prices (MRP). The difference between the wholesale price and the retails price is the profit margin (Distributor's margin) of the Appellant. For sale of cellular products, the Appellant entered into an Agreement dated 11th November'2014 with BSNL under which they are distributor of BSNL Prepaid/Post-paid SIM, Vouchers and are engaged for sale and distribution of BSNL products. The Appellant contends that the relation between them and BSNL is that of buyer and seller. There is no service provider/service receiver relationship. The Appellant does not provide any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax registration and the department was kept in dark with malafide intention to evade tax. The Ld. Commissioner has confirmed the Service Tax as demanded in the Notice along with interest and equal amount of tax as penalty. Penalties were also imposed under Section 77 of the Finance Act, 1994. 4. In their grounds of appeal, the Appellant submits that they are exempted under Sl. No.29(f) of the mega Exemption Notification No. 25/2012 - ST dated 20-06-2012, which read as follows: 29 (f) selling agent or a distributor of SIM cards or recharge coupon voucher. The Appellant further submits that the transactions between them and BSNL is for sale/purchase of goods and not for rendition of any taxable services. No service tax is leviable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid final order of this Tribunal has been accepted by the department and has attained finality. Accordingly, they contended that the impugned order is liable to be set aside. 6. The Appellant submits that similar views have been expressed in the following cases- (i) J. K. Enterprises Vs Pr.CCE reported in 2023 (70) GSTL 297 (Tri.-Del.). (ii) A.S.S. Manoharan Vs. CCE, reported in [2018] 56 GSTR 478 (CESTAT-Chennai). (iii) CCE Vs. Rama Sales and Services reported in 2018 (12) G.S.T.L286 (All). 7. The Appellant submits that entire demand in the instant case is barred by normal period of limitation. The dispute in the instant case relates to the period 2015-16 whereas the Show Cause Notice was issued on 30-12-2020 i.e. beyond the nor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the issue is no longer res integra as the Tribunal Kolkata has decided the issue in Appellant's own case Kedia Computer Services Vs. CCE reported in 2020-TIOL-951-CESTAT-KOL for the period July'2003 to November'2004 and December''2004 to July'2005 while dealing with identical facts has held that there is no agency service or sales promotion service provided in such transactions, but it is a case of sale/purchase of item from BSNL on principle to principle basis which is pure trading activity and on the cellular products, the BSNL has already discharged Service Tax, hence, demanding service tax again from the trader would amount to double taxation. The said final order of this Hon'ble Tribunal has been accepted by the department a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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