9911796707
TMI Blog2012 (6) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicants are seeking waiver of pre-deposit of Service Tax of Rs. 13,14,63,643/- under the category of 'Franchise Service' and Rs. 16,869/- under the category of 'Management Consultants Service' along with interest and equivalent amount of penalty under Section 76 of the Finance Act, 1994 ad penalty of Rs. 20 crores under Section 78 and Rs. 1000/- under Section 77 of the Finance Act, 1994. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of manufacture and sale which represents the profit in the business would go to the brand owner i.e. applicants. In this set of facts, the tax liability of the applicants was examined by the Anti Evasion section under 'Franchisee Service' and on the finding that manufacture and sale of branded beverages amounted to grant of representational right, therefore, a show-cause notice was issued for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 16.6.2005, the scope of definition was exhausted and under the exhaustive definition, it was held by the learned Commissioner that activity does not fall under 'Franchise Service'. Therefore the activity undertaken by the applicants cannot be termed as 'Franchise Service' under the restricted definition. He further submitted that the show-cause notice is also hit by bar of limitation as the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Jt. CDR appearing on behalf of the Revenue submitted that the activity undertaken by the applicants is qualified within the restricted definition of 'Franchise Service' prior to 16.6.2005 and the Commissioner has dealt the same in detail. The order for the subsequent period is not relevant to the facts of this case, as for both the periods there were different agreements and arrangements bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service' under the exhaustive definition. Prima facie, the activity undertaken by the applicants cannot be covered under the restricted definition of 'Franchise Service'. Further, the issue is debatable and interpretation of law under which category the activity undertaken by the applicants shall be covered and from whom the Service Tax is to be recovered is also in jeopardy. In that situation, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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