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TMI Blog2017 (4) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... upon an organization for its very survival in the realities of the legal environment in which the organization functions. These are unavoidable and are not easily performed by the human resources available within the organization. Professional outside assistance has, necessarily, to be solicited and, considering the inevitability of such soliciting, loses the character of having to be outsourced for economic viability. Unless an activity is optional for the continued existence of the organization and permits the flexibility of self-performance vis-a-vis outsourcing, it does not appear to invite coverage as 'support service of business or commerce' and the appeal of Revenue has not ventured to do so - appeal rejected - decided against Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is further held in the impugned order that respondent was primarily in the business of ensuring compliance with requirements of statutes relating to taxation and that, in so far as accounting is concerned, the activities are restricted to checking and verification, and not to maintenance of accounts. It is further held that respondent, though rendering services that a Chartered Account would, is not a qualified Chartered Accountant and that the other aspects of work are akin to that performed by legal consultants. 3. In appeal, it is contended that assessee has been rendering a mix of 'business support service' and 'accounting service', and that the finding of the first appellate authority that professional services a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with compliance necessities. We do not find any evidence or submission in the grounds of appeal to controvert the findings of the first appellate authority that respondent is not an accountant who maintains the books of the clients. 6. We also take note that the definition of the taxable service in section 65 (104c) of Finance Act, 1994 broadly includes all activities that are, in the normal course of business, matters of internal processes of an entity. These relate primarily to the various functional aspects of the working of an organisation such as production management, sales management, financial management and marketing management and that, when these essential work of an organization is outsourced, the provider of outsourced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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