TMI Blog2009 (11) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... - since agent/franchisees were not doing independent business but were only acting as agent for collection and delivery of parcel as agent in courier service and apart from appointing agents/franchisees, assessee was also not rendering any service to franchisees, demand of service tax from assessee under category of 'franchisee service' was not tenable. - 21 & 22 OF 2009 - - - Dated:- 5-11-2009 - C.N. RAMACHANDRAN NAIR AND V.K. MOHANAN, JJ. Paul Mathew (Perumpillil) for the Appellant. P. Gopinath Menon and Abraham Thomas for the Respondent. JUDGMENT C.N. Ramachandran Nair, J. - Connected appeals are filed by a courier service agency challenging the orders of the Customs, Excise Service Tax Appellate Tribunal upholdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s collected from the State for delivery outside Kerala. Similarly for parcel collected for delivery outside India, the agents/franchisees are paid Rs. 50 for every parcel with service charges above Rs. 500 and in respect of parcels with service charges below Rs. 500, charges payable to the agents/ franchisees is only 10 per cent of such charges. The courier service operation therefore leads to sharing of substantial amount of charges collected from the customers with the franchisees and appellant gets only the balance amount. The agreement provides for payment of remuneration to the agents/franchisees only for service charges recovered by them for the articles collected by them for delivery at various destinations. The department assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requested by the customers. The counsel contended that the appellant transports goods between major centres and local collection and deliveries are done by engaging agents/franchisees. So much so, the services of agents/franchisees and appellant together will only constitute the complete courier service. Facts seen from the agreement and accepted by the lower authorities is that the courier service charges collected from the customers for booking the cargo is shared between the appellant and the agents/franchisees in an agreed manner. The question therefore to be considered is whether the service charges collected from the customers on which full tax is paid for rendering courier service under section 65(33) read with section 65(105)(f) by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65(105)(zze) has any application in regard to rendering of courier service by appellant with the assistance of agents/franchisees. Franchise is defined in section 65(47). '(47) "franchise" means an agreement by which— (i) 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 trademark, service mark, trade name or logo or any such symbol, as the case may be, is involved. (ii) the franchisor provides concepts of business operation to frachisee, including know-how, method of operation, managerial expertise, marketing technique or training and standards of quality control except passing on the ownership of all know-how to franch ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
