Business Support Service

CESTAT, BANGLORE BENCH
Phoenix IT Solutions Ltd. (vs) Commissioner of Central Excise*, Visakhapatnam
Section 65(104c) of the Finance Act, 1994 – Business – Support services – Period 1-7-2003 to 30-9-2006 – Assessee under agreements with electricity companies provided billing and accounting services – In terms of contract, electricity department had to provide meter reading books on prescribed dates and assessee was required to enter data of meter readings, verify same, incorporate it in computer master and process bills – Whether above activity was classifiable under ‘support services of business or commerce’ – Held, yes [Para 18]
Section 65(104c) of the Finance Act, 1994 – Business – Support service – Period 1-7-2003 to 30-9-2006 – Assessee provided consumer indexing services to electricity companies which included identifying matters like, transformers connected to feeders, poles to be connected to distribution transformers, customers, making inventory, painting identification marks and numbers on these transformers and poles, etc.- Whether since above services provided by assessee solved logistics problems when complaints were received, services provided by assessee would be classifiable under ‘support service of business or commerce’ – Held, yes [Para 20]
Section 65(104c) of the Finance Act, 1994 – Business – Support service – Period 1-7-2003 to 30-9-2006 – Assessee provided energy audit service to electricity companies – Said energy audit was to find out difference between energy received and supplied to customers – Whether since by doing energy audit, assesse was assisting electricity companies in finding out whether all electricity received had been sold and if not, where was problem, what assessee was doing was nothing but management of distribution and logistics of electricity supplies which would be covered under support service of business or commerce – Held, yes[Para18]