VALLAMATTAM COMMUNICATIONS Vs. COMMISSIONER OF C. EX., COCHIN

JUDGEMENT

(1.) THIS appeal arises from Order -in -Appeal No. 69/2006 -S.T., dated 27 -3 -2006 by which the Commissioner (A) has confirmed Order -in -Original No. 62/2005/S.T., dated 16 -8 -2005 confirming Service tax amount of Rs. 27,437/ - and imposing penalty under Section 78 of the Finance Act, 1994. The appellants were acting as dealer of M/s. BSNL under an agreement. They were purchasing SIM cards from the BSNL at an agreed price and were selling the same to the customers at the rate fixed by the BSNL and the difference was the profit of the appellant. Revenue proceeded to levy Service tax on this activity under the heading of Business Auxiliary Services. The appellants contended that there was only sale of SIM cards by them and they were also not rendering any other services. While selling the SIM cards, the BSNL discharged Sales tax, it was contended that the question of levy of Service tax did not arise. They further contended that as they were dealers and dealing in goods in the form of sale of SIM cards, there was no services involved for levy of Service tax. Their plea has been negatived.

(2.) THE learned Counsel submits that in an identical matter of other dealers, this Bench in the case of M/s. South East Corporation v. CC, Cochin by Final Order No. 610/2007, dated 25 -5 -2007 [2007 (8) S.T.R. 405 (T)] allowed the appeal. This ratio has been followed in M/s. Hindustan Associated Traders and Others v. CCE, Cochin by Final Order No. 673 -674/2007, dated 7 -6 -2007. He submits that the issue is covered in their favour and hence, appeal be allowed.

(3.) THE learned JDR reiterated the findings given by both the authorities.