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2019 (3) TMI 348 - HC - Service TaxFranchise service or not - Demand of service tax - Held that:- The definition of the term “franchise” as found in this clause means an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trade mark, service mark, trade name or logo or any such symbol, as the case may be, is involved - Insofar as the understanding of the Revenue about the “franchise service” is concerned, it is apparent that this is to be found in sub-clause (zze) of clause (105) of section 65 of the Finance Act, 1994. There, the definition of “taxable service” means any service provided or to be provided and, in the instant case, to a franchise by the franchisor in relation to franchise. The tribunal found that clause (10) of the agreement between the assessee and the dealer was picked up and read in isolation to arrive at the above conclusion. That is not justified at all. The agreement will have to be read as a whole and precisely - Once the matter is approached in a holistic manner and looked as such, then, we do not find any perversity or error of law apparent on the face of the record in the impugned order. Appeal dismissed.
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