Business Auxiliary Service classification dispute over electricity board support services led to partial pre-deposit relief

Services involving meter reading, bill preparation, bill delivery, consumer ledger maintenance and allied work for an electricity board were examined for prima facie classification as Business Auxiliary Service. The tribunal did not grant full waiver of pre-deposit and instead required deposit of 50% of the service tax demand, while the remaining demand stayed subject to compliance. The note reflects the classification dispute and the interim pre-deposit direction, without recording any final determination on tax liability.

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Issues: Whether the services of meter reading, bill preparation, bill delivery, consumer ledger maintenance and allied work for the electricity board were prima facie classifiable as Business Auxiliary Service, and whether full waiver of pre-deposit was warranted.

Outcome: The application for total waiver was declined in part and a pre-deposit of 50% of the service tax demand was directed, with the balance to remain stayed on compliance.

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