M/s. Chotey Lal Radhey Shyam vs Commissioner of Central Excise & Service Tax, Lucknow

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2015 Supreme(Online)(All) 79

ALLAHABAD HIGH COURT
Presiding Officer, J
M/s. Chotey Lal Radhey Shyam – Appellant
Versus
Commissioner of Central Excise & Service Tax, Lucknow – Respondent

Table of Content
1. the nature of franchisee transactions without service obligations. (Para 1 , 2)
2. judicial precedent confirms tax conclusions on service classification. (Para 3)
3. conclusion on tax liability based on prior payment and trading activities. (Para 4 , 5)

1. The present appeal is directed against the Order - in - Original No. 19 / Commr. / LKO / 2010 dated 03/07/2010 passed by the learned Commissioner of Central Excise & Service Tax, Lucknow holding that service tax is payable on the profit margin earned by the appellant during the course of trading of sim cards and recharge coupon of Bharat Sanchar Nigam Ltd. (BSNL) thereby upholding the demand of service tax amounting to Rs. 1,21,71,306/- along with penalty under S.78, S.77(1)(a) and (c) of the Finance Act, 1994 . Aggrieved by the said order, the appellant is before us by way of present appeal. Brief facts of the case are that M/s. Chotey Lal Radhey Shyam was appointed as a franchisee for Lucknow by BSNL for the sale of sim cards and recharge coupons of BSNL, who in turn, sells the same through network of retailers, which amounts to trading activity and the appellant has not provided any service to BSNL and the all