17 October 2010
Supply of sim card is not sales it is purely a service since no property in goods transfer by supply of sim cards by the dealer. The similar view is taken by kerala high court in latest case namely Vodafone Essar Cellular vs. ACIT
can see for more at below link: http://amitbajajadvocate.blogspot.com/2010/09/supply-of-sim-card-is-not-sale-discount.html
29 December 2010
it will depend on the intention of the party. In case party is purely a trader in sim cards, then it will not be considered as a service.
However, in case party is also a telecom service provider (say vodafone, bharti, idea), supply of sim card with connection may be treated as service. hope it is clarified