SIM Card replacement charges are liable to service tax and not VAT: Madhya Pradesh HC

The High Court of Madhya Pradesh held that where assessee provided various kinds of telecom services such as cellular, fixed line and broadband services and paid service tax thereon, levy of VAT on SIM card replacement charges and lease line charges received by assessee from subscribers not justified.

Idea Cellular Ltd. v. Assistant Commissioner of Commercial Tax, LTU, Indore* [2017] 78 taxmann.com 106 (Madhya Pradesh)