The New Delhi bench of Customs Excise and Service Tax Appellate Tribunal in the case of M/s Ascent Poly Films Pvt. Ltd vs. CCE Delhi-III wherein declared that activity of sale of SIM card and the electronic rechargeable coupon to the customers would not constitute Business Auxiliary Services.
In the instant case, the appellants challenged the order of the CCE (A), Delhi, wherein the aforementioned activities to the customers were categorized under the taxable service of business auxiliary service and accordingly, Service Tax demand was confirmed against the appellant.
The chartered accountant appeared for assessee before the CESTAT contended that BSNL had discharged the entire Service Tax liability on the gross value of SIM card and electronic rechargeable coupons accordingly assessee cannot be subjected to further tax.
The tribunal noted the decision of the Tribunal on a similar issue in Chotey Lal Radhey Shyam wherein the issue was concluded in favor of the assessee by considering the fact that the appellant is only engaged in the trading activity and does not render any taxable service in the category of ‘business auxiliary service”.
Finally, bench including Judicial Member S.K. Mohanty and Technical Member B. Ravichandran, declared that the assessee is not subjected to further tax since their activities of the sale of SIM card and electronic rechargeable would not have amounted to business auxiliary service.