Order Date – 27 July 2022

Facts –

• The appellant, Computer India was engaged in distribution of SIM Cards of M/s BSNL, receiving trade discount of 4.5%.
• Revenue is of the view that service falls under the category of “Business Auxiliary Service”, hence is taxable. Accordingly, a show-cause notice was issued to the appellant demanding duty.
• The show-cause notice was adjudicated by the Commissioner as per the impugned Order-in-Original No.32- 35/ST/Commr./2013 dated 28.03.2013. Being aggrieved, filed this appeal.

Issue –

• Whether a product which has already suffered service tax be subjected to tax again at the hand of distributor?

Oder –

• The Tribunal observed that this appeal is squarely covered in favour of the appellant by various decisions of this Tribunal including case of case of R.Venkataramanan Vs. Commissioner of Central Excise, Trichy where it was held that marketing and distribution of products does not fall within the ambit of Business Auxiliary Service.
• Similar views have been expressed by the Principal Bench of this Tribunal in the case of G.R. Movers Vs. Commissioner of Central Excise, Lucknow.
• The Tribunal did not find any merits in the impugned order and the same is set aside. Consequently, appeal is allowed.