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2018 (9) TMI 1067 - CESTAT CHENNAITime Limitation - franchise services - case of appellant is that the issue being interpretational and the appellant having no intention to evade service tax, failure to make the payment, being only because of interpretational issue, the demand for the extended period cannot sustain. Held that:- The definition of ‘franchise’ had undergone an amendment with effect from 16.06.2005. Prior to this date, in the absence of all the four ingredients in an agreement, the transaction would not fall into the category of ‘franchise’ - On perusal of the agreement of the appellant with vehicle owners, it is seen that Clause No. 5 does not make any obligation on the part of the vehicle owner not to cater to other customers. Thus, the driver/owner can cater to the requirements of other customers also even though they have entered into an agreement with the appellant. Thus, the fourth limb of the earlier definition has been given go-by after 16.06.2005 and hence, the argument of the learned Counsel that the issue is an interpretational one is not without force. The impugned order is modified to the extent of setting aside the demand for the extended period only - appeal allowed in part.
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