Supreme Court in Civil Appeal No. 6319 of 2011, dated 04.08.2011 has held that SIM does not fall under the category of goods as no element of sale is involved.
Supreme Court has held that the amount received by the cellular telephone company from its subscribers towards SIM Card will form part of the taxable value for levy of service tax, for the SIM Cards are never sold as goods independent from services provided. They are considered part and parcel of the services provided and the dominant position of the transaction is to provide services and not to sell the material i.e. SIM Cards which on its own but without the service would hardly have any value at all. Judgment enclosed.
