The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), ruled that buying and selling of SIM cards and recharge coupons does not amount to providing business auxiliary service. The appellant, M/s J.K. Enterprisesbuys and sells SIM cards, recharge coupons etc. for mobile phones under a super distributor agreement with M/s Vodaphone Essar Digilink Ltd. A show cause noticecovering the period April 2008 to March 2012 was issued to the appellant alleging that it was providing business auxiliary service to M/s Vodaphone Essar Digilink Ltd as their franchisee for sale/distribution and marketing of the SIM cards and recharge coupons.
Source Taxscan
