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2012 (10) TMI 489 - COMMISSIONER OF CENTRAL EXCISE (APPEALS), CHENNAIFranchise Service - appellants are engaged in providing Commercial Training and Coaching Services – alleged that appellant had paid an amount towards royalty to their USA based Franchiser for the use of logo and study materials - held that:- It is evident from the records and the internet details that the appellant termed as Master distributor in the agreement is marketing the Bullet proof manager course as the only franchisee in India for M/s. Crest Com International Ltd. USA and that he is paying royalty to the foreign company for marketing the course. Thus, I hold that the appellant is engaged in franchise service and he is liable to pay Service tax on the Royalty charges paid to the foreign company under “Franchise Service”. Payment of service tax - Held that:- it is evident that the appellant had collected service tax while charging the above fees from their distributors but they had not produced any evidence whether the collected service tax was paid to the Department - onus is on the appellant to substantiate their contention that the royalty paid by them to the Foreign service provider had already suffered Service tax and the same had been paid to the Department. In the absence of any documentary evidence it cannot be said that he had paid service tax to the department on the fees collected which includes royalty charges, which is shared by the appellant and the foreign company as per their agreement – demand upheld
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