Business auxiliary service

CESTAT, BANGALORE BENCH

R.B. Agencies

v.

Commissioner of Central Excise, Calicut

T.K. JAYARAMAN, TECHNICAL MEMBER

FINAL ORDER NO. 749 OF 2007

APPEAL NO. ST / 53 OF 2007

July 3, 2007

Section 65 of the Finance Act, 1994 - Business auxiliary service - Whether where assessee merely purchased SIM cards and recharge coupons from BSNL and sold same for a profit, assessee did not render any service but simply sold goods and, therefore, it would not be liable to pay service tax under category of “Business Auxiliary Services” - Held, yes [Para 4]

FACTS

The assessee was engaged in purchase of pre-paid SIM cards and recharge coupons from BSNL and sold them for a profit. Service tax was demanded from the assessee for the above activities under category of ‘Business auxiliary service’.

On appeal:

HELD

The assessee merely purchased SIM cards and recharge coupons from BSNL and sold the same for a profit. It was also seen that sales tax authorities were proceeding against the similarly situated parties for payment of sales tax. In any case, the Tribunal had already taken a view that the assessee did not render any service but simply sold the goods. Therefore, it would not be liable to pay service tax under the category of “business auxiliary services”. [Para 4]