VINOD CHANDRAN, J.

1. The revisions have been referred to us by a Division Bench, doubting the sustainability of the findings of another Division Bench; with respect to forfeiture of tax under Section 72 of the Kerala Value Added Tax Act, 2003 [for brevity "KVAT Act"] and Section 46A of the Kerala General Sales Tax Act, 1963 [for brevity "KGST Act"]. The question arose in the context of the challenge raised against the levy of service tax under the Finance Act, 1994 and sales tax under the KGST Act on sale of SIM Cards. A Division Bench of this Court found, on the strength of 'aspect theory', that both taxes are leviable on the sale price of SIM Cards, which includes activation charges also. Later, by a judgment of the Hon'ble Supreme Court it was held that activation charges cannot be included for levy of sales tax for reason of there being no transfer of property in goods; either by way of sale or lease.

2. Some of the Telecom Companies challenged the levy under the Finance Act, 1994 and some others the levy under the Sales Tax enactment; alternatively subjecting themselves to the other levy. Here, we have an assessee-respondent who had challenged the service tax levy on sal