𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗮𝗻𝗱𝗶𝗴𝗮𝗿𝗵 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗦𝗜𝗠 𝗮𝗻𝗱 𝗥𝗲𝗰𝗵𝗮𝗿𝗴𝗲 𝗖𝗮𝗿𝗱𝘀 📢 T𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: "When telecom operators pay Service Tax on the entire MRP of SIM and recharge cards, there is no additional Service Tax liability for distributors or franchisees selling these cards to the public."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s S. R. Medical Agencies 𝗜𝘀𝘀𝘂𝗲: The appellant, an authorized distributor for Bharat Sanchar Nigam Ltd. (BSNL), was served a show-cause notice asserting that the commission and discount received from BSNL were taxable under "Business Auxiliary Service." The Commissioner confirmed the demand and imposed penalties.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that distributors of telecom SIM and recharge cards are not liable for additional Service Tax under "Business Auxiliary Service," as telecom operators like BSNL already pay tax on the entire MRP. The Tribunal allowed the appeal, dismissing further tax demands on such distributors.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: Title: M/s S. R. Medical Agencies vs. Commissioner of Central Excise, Chandigarh-II 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 1789 Of 2011 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 24 August 2023 📜 This ruling clarifies that telecom operators' payment of Service Tax on MRP shields their distributors from further Service Tax liabilities on SIM and recharge card sales.