Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 228 - AT - Service TaxLeviability of service tax - franchise service - Held that:- With effect from 16.6.2005 and that amount has already been paid along with interest and duly appropriated. Indeed we find that while imposing penalty under Section 78 ibid only the amount of service tax leviable for the period prior to 16.6.2005 has been taken into account and no penalty was levied in relation to the amount of service tax leviable with effect from on 16.6.2005. As is evident from the forgoing the only issue involved in this case is whether condition No. iv of the definition of franchise given in Section 65(47) of Finance Act, 1994 was satisfied in terms of the franchise agreement entered into by the appellant. - franchisee was obliged not to open any school with any name in the existing premises/building operational area of the school. In other words, the franchisee was free to open any school with any name in a "different premises/building operational area of the school". Thus in our view condition No. iv of the definition of franchise quoted above is not satisfied in the present case and consequently the agreement does not fall in the category of franchise agreement as defined under Section 65(47) ibid prior to 16.6.2005 - no service tax is leviable under franchise service prior to 16.6.2005 - Impugned order is set aside - Decided in favour of assessee.
|