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2021 (10) TMI 640 - AT - Service TaxClassification of service - Franchise Service or not - one stop painting solution to the customers - respondent recovered certain income under the head Home Solutions Operations - Revenue was of the view that these services will fall under a category of franchisee service as defined under Section 65(105)(zze) of the Finance Act, 1994 - HELD THAT:- It is not settled law that unless and until representational rights have been actually transferred to the franchisee, the service tax could not have been levied under the category of franchisee services. The terms of the agreement clearly provide that home solution service provider is barred from making any statement on behalf of the company or in any manner how to represent the respondent. When there is a specific clause in the agreement which bars the home solution service provider from representing the respondent, then how it has been claimed that such representational rights have been granted to the home solution service provider. Nothing has been brought on record by which it can be stated that such representational rights were granted to the home solution service provider. The reliance placed by Revenue in the case of Australian Foods India Ltd. COMMISSIONER OF CENTRAL EXCISE, CHENNAI-II VERSUS M/S AUSTRALIAN FOODS INDIA LTD. [2013 (1) TMI 330 - SUPREME COURT] is totally misplaced - this decision also does not help the case of Revenue, as this decision has not been rendered in the case where the issue was in respect of franchisee services but was in case of trade and brand name. The appeal filed by Revenue is dismissed.
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