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 should be treated as a sale of goods under the Kerala General Sales Tax Act, 1963. The Court held that the activation of SIM cards constitutes a service, and thus the value of SIM cards is taxable under the service tax regime. The appeal against the Kerala High Court's decision was dismissed, affirming the levy of service tax on SIM cards.