TMI Blog2013 (12) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... help M/s. ABCTCL, in taking necessary clearance from the Co-operative Housing Societies, Local bodies etc. However, beyond that appellants have no role for day to day running of the outlets. Demand has been made as promotion or marketing or sale of goods or services produced by the client. We do not find that appellants have done any activity relating to promoting or marketing or sale or goods produced or provided by, belonging to the client. We also do not find any auxiliary service relating to any of the clauses mentioned in the definition has been provided by the appellants. They have not provided any service of the type enumerated in the last clause of the definition - Decided in favour of assessee. - ST/152,153 & 154/2006-Mum & ST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so upheld by the respective appellate authorities by various orders and it is against the said orders of the first appellate authority that the appellants are before us. 4. Ld. Counsels for various appellants main contention is that though the agreement is titled as "Franchisee Agreement" but essentially they have rented out their property to M/s. ABCTCL. Contention was that a perusal of the agreement would indicate that they are only letting out the property for consideration which is a fixed amount or percentage of turnover which ever is higher. Ld. Counsels further contention was that they have no role whatsoever in day to day running of the caf . It is only at the initial stage they have to make arrangement for the requisite power sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in queries raised by the Bench on earlier hearing in one of the appeals. 6. We have considered the rival submissions. We have also gone through the Franchise agreement carefully. We note that even though the agreement is termed as "Franchise Agreement", it is essential an agreement relating to letting out immoveable property for running outlet of "Caf Coffee Day". Further as the properties are being taken to run Caf Coffee Day, certain conditions have been enumerated so as to ensure the smooth functioning of outlets on day to day basis and cooperation by Appellants in this regard. Appellants have also been obliged to help M/s. ABCTCL, in taking necessary clearance from the Co-operative Housing Societies, Local bodies etc. However, beyon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eques, account and remittance, evaluation of prospective customer and public relation services. and includes services as commission agent, but does not include any information technology services. Explanation - For, the removal of doubts, it is hereby declared that for the purposes of this clause "information technology service" means ..". The said definition was amended w.e.f. 10.9.2004 and the new definition is as under: Business auxiliary service' means any service in relation to, - (i) Promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customer care service provided on be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m networking or any other service primarily in relation to operation of computer systems". As noted earlier out of the five appeals, in four appeals demands have been made in the last clause which provides that a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision. In one case the demand has been made as promotion or marketing or sale of goods or services produced by the client. We do not find that appellants have done any activity relating to promoting or marketi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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