Document Fragment View
Fragment Information
Showing contexts for: hosting in Galileo International Inc. vs Dcit on 30 November, 2007Matching Fragments
The goal is for maximum protection to be afforded to each system or function by virtue of the above category of service (refer to Category of Service Section in this document). This will be achieved through maximising up-time by minimising scheduled maintenance and initiating a rigid recovery sequence when appropriate.
5.1.2 Host Network & Premises:
Host availability represents the percentage of time the Galileo Host complexes were available for the end subscriber. This component shall be measured and reported by Galileo International.
6. Service Management Problem Management Refer to Galileo International's Problem Management Procedures for complete documentation on the Problem Management System (PMS).
6. Host, Network and Premises 6.1 Problem Management:
Refer to Galileo International's Problem Management Procedures for complete documentation on the Problem Management System (PMS).
6.1.1 : Host, Network and Premises:
For problems to be recognized and addressed they must be logged into the Galileo International PMS. Typically problems are recognized as originating at either Host, Network or the Customer Premises components. Currently all problems identified by the End Subscriber, the NDC, the Partner or Associate, and subsequently logged and esca;ated via PMS, are assigned a Business Impact value based on the nature of the problem as defined below:
What is the business of the Exchange in such a scenario? It is clearly that of running an integrated market place for which it receives fees/commission for every transaction put through the market, namely, Galileo System. To take another example, say London Stock Exchange (LSE) receives permission to operate in India and with a view to carry on business in India, it provides computers to traders and brokers and provides connectivity by leasing telecommunication network, can it be said that it has no fixed place in India through which its business is carried on. The assessee also brings together the Subscriber and the Airlines on computer to computer basis and the booking is automatically generated seamlessly on the CRS. Therefore, it is absolutely imperative for the assessee's business that there is a continuous and instant two-way communications between the vendors and the subscribers. The booking is binding on the Airlines (Clause 31 & 3J/P. 14-15-APB) and also the subscribers unless he cancels it in accordance with the standard terms (the assessee earns fees on cancellations also). This is so not because of any contract between the vendor and the subscriber, but because of contract between the assessee and the vendor. On the other hand, the assessee has also not directly entered into an agreement with a subscriber in India, but always honours and abides by the terms of the contract between Galileo India and an Indian Subscriber. Indeed it has prescribed a standard Subscriber Agreement for use by Galileo India. Thus, the three contracts have to be read together in order to understand the exact legal obligations of the five parties; namely, assessee, vendor, Galileo India, SITA & Indian Subscriber. None of the four contracts could become operational without implementation of other two contracts. The making of booking and generations of tickets take place because of sifting of information by the Subscriber on the computer installed in his premises and the necessary commands punched by him on the computer. The moment a subscriber accesses the host computer, its computer gets integrated with the host computer. Neither the Airlines nor the Subscribers are concerned with the location of the host computer or how it processes the data. From practical and commercial point of view of the Airlines and the subscribers, what is material is that the online information supplied the Airlines is displayed on the computer screen of the subscribers for their decision making so that they can make bookings on their computers. The assessee is clearly in the business of running a technologically complex and state-of-the art electronic platform, which acts as a flight reservation exchange or 'market place' in India. The communication network in India, display on subscriber's screen and accessability to the CRS for user by the subscribers are integral components of the commercial operations of the CRS. The business of the assessee can also be compared with that of a commission agent. Its business, as stated above, is to enable a travel agent to make a contract of reservation of a passenger flight with an Airlines. In other words, the Galileo system leads to the business between the travel agents and airlines. As observed by the Supreme Court in the case of CIT v. Rai Bahadur Jai Ram Valji .
There are two key areas of measurement when considering services to the End Subscriber. These are System Availability and Response Times. This document recognizes that both of these categories are affected by Global. Regional and market based influences and that measurement of these services can effectively be divided into HOST(H), NETWORK (N), and CUSTOMER PREMISES (P).
From the above it is clear that two of the three components constituting CRS (N and P) are situated in India.
vi) The assessee contends that it has not carried out any activity in India which could be said to contribute to the booking made by a Subscriber. This is not correct. The assessee's contention is based on a wrong assumption that the 'Host Computer' alone constitutes the CRS. CRS is a 'system' which includes not only the Host computer in USA., but also telecommunication network in India (regional Network) as also hardware & software installed on the premises of the subscriber. All the three services, namely Host, Network and Customer services are provided by the assessee. In fact, the assessee has clearly identified these three vital components of the CRS as H, N&C in the 'Service Agreement' (P. 142-174 of APB), which is part of the Distribution Agreement.