TMI Blog2010 (8) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... chak, Chartered Accountant, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. Respondents are engaged in providing following services :- (i) Services of encrypting data of various clients in their computer system and using the said data by using the computer data base 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, dated28-2-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms them of the products of their client s concern/company only and tries to sell them their products. Thus, aCallCenterworks to promote the business development of a particular company only, by contacting the prospective customers, themselves. Whereas in the instant case, the respondents 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, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts submitted that as rightly held by the Commissioner services provided by them is only aCallCenter. He submits that no charges are levied to the persons who call the respondents and they require registration from the business and firms etc. so that their details are noted 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 ourselve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bureaus but has erred in arriving at conclusion that the appellants are not a call Center under a belief that in the present case the customers contact the appellants to make inquiry whereas in case of call Center, the call center contacts customer. According 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... help, assistance etc. The only difference is methodology of their functioning. In traditional call center, normally the 1st party and the 2nd party approaches the clients i.e. 1st party to keep/maintain database of the products/services offered/dealt with by the 1st party for its use by the inquirer/prospective 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 Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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