ORDER : P. Sam Koshy, J. Heard Ms.Anushka Rastogi, learned counsel representing Mr.Lakshmi Kumaran & Sridharan, learned counsel for the petitioner and Mr.T.Chaitanya Kiran, learned Assistant Government Pleader representing Mr.Swaroop Oorilla, learned Special Government Pleader for State Tax. Perused the record. 2. The present writ petition has been filed by the petitioner under Article 226 of Constitution of India assailing the assessment order in Form VAT 305 dated 24.04.2010 passed by respondent No.1 for the assessment year 2006-07. 3. The question of law involved is whether the SIM Card which is showed by the petitioner establishment would be leviable to tax under the provisions of the VAT Act. The said issue, no longer is res integra as it has been in very categorical terms held by the Hon’ble Supreme Court in the case of Idea Mobile Communication Ltd., v. Commissioner of Central Excise and Customs, Cochin , 2011 (12) SCC Pg 608 wherein in paragraph Nos.17 to 19 it has been held as under: “17. The High Court has given cogent reasons for coming to the conclusion that service tax is payable inasmuch as SIM Card has no intrinsic sale value and it is supplied to the customers for providing mobile service to them. It should also be noted at this stage that after the remand of the matter by the Supreme Court to the Sales Tax authorities the assessing authority under the Sales Tax Act dropped the proceedings after conceding the position that SIM Card has no intrinsic sale value and it is supplied to the customers for providing telephone service to the customers. This aforesaid stand of the Sales Tax authority is practically the end of the matter and signifies the conclusion. 18. The sales tax authorities have themselves conceded the position before the High Court that no assessment of sales tax would be made on the sale value of the SIM Card supplied by the appellant to their customers irrespective of the fact whether they have filed returns and remitted tax or not. It also cannot be disputed that even if sales tax is wrongly remitted and paid that would not absolve them from the responsibility of payment of service tax, if otherwise there is a liability to pay the same. It also cannot be disputed that even if sales tax is wrongly remitted and paid that would not absolve them from the responsibility of payment of service tax, if otherwise there is a liability to pay the same. If the article is not susceptible to tax under the Sales Tax Act, the amount of tax paid by the assessee could be refunded as the case may be or, the assessee has to follow the law as may be applicable. But we cannot accept a position in law that even if tax is wrongly remitted that would absolve the parties from paying the service tax if the same is otherwise found payable and a liability accrues on the assessee. The charges paid by the subscribers for procuring a SIM Card are generally processing charges for activating the cellular phone and consequently the same would necessarily be included in the value of the SIM Card. 19. There cannot be any dispute to the aforesaid position as the appellant itself subsequently has been paying service tax for the entire collection as processing charges for activating cellular phone and paying the service tax on the activation. The appellant also accepts the position that activation is a taxable service. The position in law is therefore clear 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. Thus, it is established from the records and facts of this case that the value of SIM cards forms part of the activation charges as no activation is possible without a valid functioning of SIM card and the value of the taxable service is calculated on the gross total amount received by the operator from the subscribers. The Sales Tax authority understood the aforesaid position that no element of sale is involved in the present transaction.” 4. The Sales Tax authority understood the aforesaid position that no element of sale is involved in the present transaction.” 4. The aforesaid judgment clearly lays down the issue that the issuance of SIM Cards would therefore be not amenable to sales tax as it does not amount to sale of good but only amounts to providing services. The same view earlier was also reiterated by the Hon’ble Supreme Court in the case of Bharat Sanchar Nigam Limited v. State of Andhra Pradesh , 2006 (3) SCC Pg.1 , which has been further followed by the Unified High Court of Andhra Pradesh (DB) in 2012 25 STR 321 (A.P.). This Bench also had an occasion of taking up one similar writ petition i.e., W.P.No.5675 of 2004 which stood decided on 24.01.2024, wherein the aforesaid judgments were taken note of and in the light of the aforesaid judgments, we had allowed the writ petition holding that the allotment of SIM Cards to the subscribers would not attract sales tax under the VAT Act. For ready reference, the provisions of certain portions of the said order of the Division Bench are reproduced hereunder: “8. As regards the others issue are concerned, a Division Bench of High Court of Andhra Pradesh in the case of M/s.Bharath Sanchar Nigam Ltd. (3 supra), br. referring to the aforesaid judgments of the Hon'ble Supreme Court i.e., Bharat Sanchar Nigam Ltd. (1 supra) and Idea Mobile Communication Ltd. (2 supra), in conclusion paragraphs i.e., 62.2 and 62.3, has specially held that SIM cards, recharge coupon vouchers, mobile telephone renta.ls on post paid connections, value added services such as ring tones, music down loads, wall papers etc., and proceeds received on sharing of infrastructure cannot be subjected to tax either under Section 4(1) or Section 4(8) of the A.P. VAT Act, 2005. While holding so, the Division Bench specifically held that telephone instruments, mobile handsets, modems ald Caller ID instruments are "goods" both under Article 366(12) of the Constitution of India and Section 2(16) of the A.P. VAT Act, 2OO5- For ready reference, paras 62.2 and 62.3 are reproduced hereunder:- "62.2 SIM Cards, recharge coupon vouchers, mobile telephone rentals on post paid connections, value added service such as ring tones, music down loads, wall papers etc., and proceeds received on sharing of infrastructure cannot be subjected to tax either under Section 4(1) or Section 4(8) of the Act. 62.3. 62.3. Telephone instruments, mobile handsets, modems and Caller ID instruments' are "goods" both under Article 366(12) of the Constitution of India and Section 2(16) of the Act". 9. The a-foresaid decision of the Andhra Pradesh High Court was subjected to challenge before the Hon’ble Supreme Court in the case of Bharat Sanchar Nigam Ltd. through its Chief General Manager Vs. The State of Andhra Pradesh, wherein the Hon'ble Supreme Court held as under: “In the present case, the High Court held that SIM Cards, Rechargeable Coupons, Fixed Monthly Charges and Value-Added Services (towards SMS, ring tones, download music etc.) are not "goods". It relied upon not only the judgment in "Idea Mobile Communication" but also the judgments of this Court in "Bharat Sanchar Nigam Ltd. vs. Union of India [ 2006 (2) SCR 823 ], Associated Cement Companies Ltd. vs. Commissioner of Customs" [ 2001 (1) SCR 608 ] and Tata Consultancy Services vs. State of A.P." [2OO5 (1) SCC 308]. The High Court, however, remitted the matter for consideration for ascertainment of facts relating to levy of sales tax on non-refundable deposits and refundable deposits. It also held that the transactions relating to telephone sets, modems and caller IDs instruments are subject to sales tax levy.” Having considered submissions of the learned counsel for the parties and also having gone through the impugned judgment, this Court is of the opinion that no interference is called for especially in view of the fact that the High Court has taken note of all the decisions on the point. Furthermore, in the recent judgment in C.A.Nos.1 1400-1l4ol 12018 "Commissioner of Customs, Central Excise & Service Tax Vs. M/s. Suzlon Enerry Ltd.', this Court has held in a slightly analogous context i.e., customized engineering drawings, are not "goods" but are essentially services and, therefore, subjected only to levy of service tax under the Finance Act, 1994." 10. Similar is an order that was passed by a Division Bench of Madhya Pradesh High Court in the case of M/s.Idea Cellular Ltd. (4 supra), wherein again the same view was reiterated, relying upon the judgment of the Honble Supreme Court in the cases of Bharat Sanchar Nigam Ltd. (1 supra) and Idea Mobile Communication Ltd,. Similar is an order that was passed by a Division Bench of Madhya Pradesh High Court in the case of M/s.Idea Cellular Ltd. (4 supra), wherein again the same view was reiterated, relying upon the judgment of the Honble Supreme Court in the cases of Bharat Sanchar Nigam Ltd. (1 supra) and Idea Mobile Communication Ltd,. (2 supra), and held that the provisions of the M.P. VAT Act, 2OO2 insofar as it relates to imposition of VAT on SIM replacement charges and lease line revenue to be ultra-uires and void. 11. In view of the aforesaid judicial pronouncements which lay to rest, the issue so far as recharge of coupons, SIM replacement charges and activation charges, etc., would be amenable to sales tax under the A.P. GST Act or not, we are of the considered opinion that the impugned re-assessment order dated 10.03.2004 for the year 2000-01 would not be sustainable and the same, therefore, deserves to be and is accordingly set aside/quashed. 12. The Writ Petition, to the aforesaid extent, stands allowed. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed.” 5. In view of the aforesaid legal precedents of the Hon’ble Supreme Court as also of this High Court, the facts in the instant case also being of similar nature, we do not find any good reason why the instant writ petition also should not be allowed in similar terms. 6. Accordingly, we allow the writ petition setting aside the impugned order holding that SIM Cards are not be leviable to tax under the provisions of the VAT Act. Consequently, miscellaneous petitions pending, if any, shall stand closed. There shall be no order as to costs.