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2014 (7) TMI 1044 - AT - Service TaxValuation - Franchisee service - Non inclusion of amount of royalty - Held that:- Prima facie, the appellant is liable to include the so-called royalty as part of the taxable value of “Franchise Service”. It has been claimed by the learned counsel that the royalty was collected by the franchisor from the franchisee as part of a profit sharing arrangement, which argument does not appeal to us inasmuch as the royalty is the only consideration specifically mentioned in the relevant agreement as consideration to be paid by the franchisee to the franchisor - royalty referred to in the agreement and actually collected by the appellant from the franchisee ought to have been made part of the taxable value of the ‘Franchise Service’ for the period of dispute - Prima facie case not in favour of assessee - stay granted partly.
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