The case is extension of the well known case of BSNL v Union of India. The Supreme Court noted following.
1. The SIM Card has no intrinsic value in regard to the Sales tax. The SIM forms a part and parcel of the activation and the charges obtained while providing SIM to customer is an activation charges.
2. No separate Sales Tax can be levied on the SIM as the same is not at all good.
3. The SIM charges should be included in the service tax domain and same can’t be double taxed under Sales Tax as well.
4. The remittance of tax to the parties on the view that it was wrongly paid doesn’t absolve the party to pay it again once it is found that she was taxable on Goods/Service.
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