G.R. MOVERS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN this proceeding four appeals are being decided together because all these appeals involve the same issue. The appellants are distributors of sim cards needed to enable telecommunication service provided by BSNL through mobile telephone. They also market recharge coupons which enables additional duration of time for which such service is allowed to the customers of BSNL. BSNL supplies these cards with fixed Maximum Retail Price (MRP) to the appellants. They collect the value of the cards and remit the value to BSNL. BSNL pays service tax on the full value of the cards. For doing these services BSNL pays commission to the appellants. The service tax demand involved in these cases is the tax demanded on such commission paid by BSNL to the appellants.

(2.) The Counsel for appellants submits that the demand for service tax from the distributor, on a value on which service tax has been already paid by BSNL, amounts to double taxation of the same value and hence the demand is not maintainable.

(3.) THE Counsel for appellants submits that question whether service tax is payable on the commission paid by BSNL out of value of services for which BSNL has already paid service tax has been under dispute before the Tribunal in the past and the Tribunal has held that demand for tax on commission paid by BSNL is not maintainable. Some of these decisions are the following: