Delhi HC Directs CESTAT to Decide on Double Taxation of Prepaid Mobile Services

The Delhi High Court has directed the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) to determine whether imposing service tax on prepaid mobile services purchased using an existing balance constitutes double taxation.

The case involved a dispute over whether tax should apply when prepaid subscribers use their balance to purchase additional services.

The petitioner argued that levying tax in such cases leads to double taxation, as the balance was already subject to tax when initially credited.

The High Court instructed CESTAT to consider the claim under Section 66 of the Finance Act, 1994 and deliver a reasonable decision. The matter remains pending before the tribunal.