1. - Rule. Returnable forthwith. Mr. Kamlakar Sharma waives service for respondents.

2. In the light of the controversy raised in the writ petition, we are of the view that the writ petition deserves to be disposed of finally at this stage. We 5 proceed accordingly.

3. The petitioner is a company registered under the Indian Companies Act, 1956. They are engaged in providing cellular mobile services. The petitioner claims to be selling SIM cards to their customers and sales tax is said to have been charged on the sale of those SIM cards.

4. Two show cause notices (1.12.2005 and 28.12.2005) were issued to the petitioner demanding service tax towards the amount received from sale of SIM cards during the period 1st April, 2003 to 30th September, 2005 in terms of Finance Act, 1994 which introduced the telephone service as a taxable service w.e.f. 1st July, 1994.

5. In response to show cause notices, inter-elle the petitioner set-up the defence that the SIM cards were goods and the customers paid sales tax thereon, and, therefore, the SIM cards were not chargeable to service tax.

6. By the order-in-original dated 2nd March, 2006, the Commissioner of Central Excise, Jaipur-I confirmed