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TMI Blog2010 (8) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... se software technology provided to them under franchise agreement for the Ahmedabad operations by M/s. A & M Communications Pvt. Limited. (ii) Compiling the data of all their clients and giving details of the same to the persons enquiring with them on telephone. (iii) Also operated as "enquiry bureaus" for their clients as per the explanation given in the Memorandum explaining the provisions in the Finance Bill, 2003 [F. No. 334/1/2003-TRU, dated28-2-2003]. The Commissioners in his impugned orders have taken a view that the business undertaken by the appellants is one of the "Call Center" and therefore even though classifiable as "Business Auxiliary Services" was exempted till 28-2-2006. Revenue is in appeal against the orders. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondents are doing exactly the opposite. By virtue of advertisement, the respondents attract companies to become their member for promoting their product. In other words, when a company becomes a member/client of the appellant, they gather entire/ relevant information of the product/service, offered by the clients/members and prepare a data base. Thereafter, they encourage the customers to dial them through their free dial services. Once the customer dials them, they provide the required information in regard to the product/service pertaining to their clients/members only. In case of aCallCenterthey are basically working on behalf of their clients i.e. working in the shoes of the clients/customers. When they call up a prospective customer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and passed on to the customers. Basically it was submitted that the functions of the services provided by them can be considered as "Enquiry Bureau". He also submitted that respondents do not support the business of one agency but have give the details of all establishments to the customers. 4. We have considered the submissions made by both the sides. We find that Commissioner (Appeals) in his order dated3-11-2008had considered this issue in depth and we find ourselves in agreement with the logic and reasoning adopted by him. Relevant portion of his order is reproduced below :- "5.1 I find that the appellants are providing information of their clients to the callers/inquirers free of cost through telephone and enjoyed exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to me, the appellants are in a center providing service to both i.e. to a caller, free of charge and to their clients whose data are compiled and encrypted on consideration. The contentions raised by the appellants have force. I find that the activities of the appellants are covered under the definition of "Call Center" under both the definition given above since the appellants are a commercial concern, they provide assistance, help or information through telephone to a caller and they contact their clients for the purpose of telemarketing hence such activities are squarely covered under the definition of the call center which were though taxable under the category of Business Auxiliary Service with effect from 1-7-2003, the same were exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rospective buyer. In both the cases, the 1st party makes payment to 2nd party. Because of the single difference in functioning, one can not conclude that the appellants are not a call center, though they satisfy all the conditions of a defined call center. I find that the appellants, beyond doubt, qualify as a call center according to the notified definition of a call center and are, rightly, eligible for the exemption from service tax Notification No. 8/2003-S.T. dated20-6-2003as amended." 5. As rightly observed by the Commissioner, the respondents are not acting for one party but for multiple parties and in the process, all are benefited. The primary function of the respondents is nothing but that of theCallCenter. Since we find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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