Cce, Chandigarh vs Rohit Industries
- CitationAppeal No.CHD-EXCUS-000-APP-113-13-14 dated 24.7.2013 passed by the Commissioner, Central
Ratio decidendi
The rule this decision rests on
The sale of SIM cards by a dealer or distributor on behalf of a telecommunication service provider does not fall within the category of business auxiliary service under the Finance Act, 1994, and no service tax is leviable on that activity under that head. The Tribunal, having regard to the Allahabad High Court's decision in CCE v. Daya Shankar Kailash Chand, holds that the law declared by that High Court is binding in the matter, and that the Revenue's appeals against orders following the Tribunal's own earlier view (Moradabad Gas Services) therefore cannot succeed, so that the impugned orders allowing the assessees' appeals are upheld.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
No. ST/Stay/60804-60806/2013, ST/Stay/60866-60867/2013, ST/Stay/50853/2014 & ST/60031-60033/2013, ST/60060-60061/2013, ST/50701/2014
(Arising out Order-in-Appeal No.CHD-EXCUS-000-APP-113-13-14 dated 24.7.2013 passed by the Commissioner, Central Excise, Chandigarh)
For Approval & Signature :
Honble Mr. Justice G. Raghuram, President
Honble Mr. R.K. Singh, Member (Technical)
1. Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether their Lordships wish to see the fair copy of the order?
4. Whether order is to be circulated to the Department Authorities?
CCE, Chandigarh Appellant
Vs.
Rohit Industries Respondent
Khillan & Co. Pvt. Ltd.
Sood Marketing
Saraswati Gas Service
Shree Ram Enterprises
Om Parkash Kedar Nath
Appearance:
Ms. Suchitra Sharma, D.R. - for the Appellant
Shri Joy Kumar, Advocate - for the Respondent
None (for 60060)
Coram : Honble Mr. Justice G. Raghuram, President
Honble Mr. R.K. Singh, Member (Technical)
F. Order No.53022-53027/2015
Per Justice G. Raghuram :
All these appeals are filed by Revenue aggrieved by orders passed by different Commissioners (Appeals). The impugned orders allowed appeals preferred by assessees against primary adjudication orders levying service tax, interest and penalties on sale of SIM cards provided by telecommunication service providers, treating the same as business auxiliary service. The impugned orders followed the judgement of the Tribunal in CCE Vs. Moradabad Gas Services & Others, reported as STO 2012 CESTAT 911 STR, for the finding that the service provided by assessees do not fall within the ambit of business auxiliary service. We notice that the Allahabad High Court in CCE Vs. Daya Shankar Kailash Chand 2014 (34) STR J99 (All.) confirmed the order of this Tribunal which had taken the same view viz. sale of SIM cards does not amount to business auxiliary service.
2. In the light of the law declared by the Allahabad High Court in the decision referred to, these appeals by Revenue are without merit and are accordingly dismissed, in the circumstances without costs.
(Justice G. Raghuram)
President
(R.K. Singh)
Member (Technical)
RM
1
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