The answer is yes, if it is providing sunlight in Karnataka. Hey, I haven't gone mad. This answer is based on a really funny and at the same time distressing news story I just stumbled upon. It is a bit old (Oct’06) but still worth reading -
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The Commercial Tax Department has argued that the OFC broadband operators are running a business venture after investing thousands of crores to put in place a state-of-the-art set-up to artificially generate light energy and supply it to its customers for their data transmission work. The characteristics of the light energy constitute a moveable property, which has to be categorised as `goods' as per the norms laid down by the Supreme Court. "In the process of data transmission, other than light energy, no other elements are involved and the customers are paying for the same. This proves that light energy constitutes goods, which is liable for levy of tax. Therefore, the State has every legal competence and jurisdiction to tax it," the department has contended.
Doesn’t sound sane, right? But knowing how clueless our babu’s are, I believe this is true. I am amazed that they haven’t started taxing telephone services for selling electrical energy and TV channels for selling electromagnetic energy as these are the only ‘goods’ being transported in those services.