BHARTI CELLULAR LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This appeal has been directed by the appellant against the impugned order -in -appeal vide which the Commissioner (Appeals) has affirmed the order -in -original regarding the Service Tax liability of the appellants to the tune of Rs. 53,41,647/ - for the period 27 -9 -1995 to 18 -12 -1997. This liability has been fastened on them in respect of sale of SIM card by them to their customers.

(2.) The ld. Counsel has contended that the sale of SIM cards by the appellants to their customers cannot be termed as taxable service and as such no Service Tax in respect thereof can be legally claimed by the department. He has also contended that the amount of the Service Tax has not been calculated in accordance with the provisions of Section 66 of the Act read with the Board's Circular No. 62/11/2003 -ST, dated 21 -8 -2003. Lastly, he has argued that the demand raised is also time -barred.

(3.) On the other hand, the Id. SDR has reiterated the correctness of the impugned order. We have heard both the sides and gone through the record.