Idea Mobile Communication Ltd vs C.C.E.& C.,Cochin

The Supreme Court addressed the issue of whether the value of SIM cards sold by the appellant is subject to service tax under Section 65 (105) zzzx of the Finance Act, 1994, or sales tax under the Kerala General Sales Tax Act, 1963. The Court held that the SIM cards, when sold, are considered goods and thus subject to sales tax, while the activation service is taxable under service tax. The appeal against the Kerala High Court's decision was allowed, affirming the Tribunal's ruling that service tax on SIM cards is not applicable.