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2017 (9) TMI 708 - AT - Service TaxFranchisee Service - the amount received from MTIL, which is for the permission granted to MTIL to print and deliver in-flight magazine “Swagat” to the appellant - Held that: - MTIL is paying a fixed monthly amount to the appellant for permitting the usage of the appellant’s name and the magazine for generating the revenue - the scope of franchisee is very wide - As such, the amount received by the appellant from MTIL is liable to be taxed under the said tax entry. Time Limitation - Held that: - the appellant is a Government of India Undertaking. As such, a rebuttable presumption is created regarding non-existence of intention to evade payment of service tax. However, in this particular case, the Revenue has produced sufficient evidence to rebut such presumption. It is seen that in spite of a notice issued under Section 77 of the Act, the appellant did not furnish the required details for quantification of tax liability - extended period of limitation upheld. Penalty - Held that: - the appellants had entertained a belief regarding non-liability of service tax and accordingly had not discharged the same, in time - Section 80 can be invoked for waiver of penalty imposed on the appellant. Appeal allowed - decided partly in favor of appellant.
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