Bharat Sanchar Nigam Ltd vs Union of India
On 2nd March, 2006, a Three Judges Bench in Bharat Sanchar Nigam Ltd, & Anr. vs Union of India & Ors. ( Writ Petition (Civil) No.183 of 2003) while dealing with the issue of imposition of sales tax on mobile telecom services held that ”telephone service is nothing but a service. There is no sales element apart from the obvious one relating to the hand set, if any. That and any other accessory supplied by the service provider remain to be taxed under the State Sales Tax Laws”. The Bench however left the issue of taxability of SIM cards for determination by the Sales Tax Assessing Authorities.