Collection of electricity bills and telephone bills on behalf of electricity boards and telecom companies is not taxable under Business Auxiliary Service

Hon’ble High Court has, in an identical issue in the case of Federal Bank Ltd., has upheld the view of this Bench inasmuch as upholding that the services of collection of telephone bills by the bank for BSNL, Airtel, etc. would not fall under the category of Business Auxiliary Service attracting liability of service tax under Section 65(19) of the Finance Act, 1994. It is held by the Hon’ble High Court that the services which are rendered by the current respondent would initially fall under ‘Cash management services’ under Section 65(12) which came into effect from 01/0...