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TMI Blog2014 (8) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... alent amount of penalty apart from penalties under Section 76, 77 & Rule 7C read with section 70 of the Finance Act, 1994. Aggrieved of the same, the appellant is before us. 2. The learned Consultant for the appellant submits that the service tax has been confirmed under the category of franchise service. The appellant, M/s Baba Trading Co. was awarded a contract by the Maharashtra State Road Transport Corporation (MSRTC) for the sole right of transporting parcel, courier and allied services on/in ordinary buses having luggage carrier of the licensor for the entire State of Maharashtra and Inter-State services of Maharashtra for the purpose of above business. The right granted under the contract was for right to book, deliver, transshipmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riSai Transport and Courier Pvt. Ltd. 2.1 The learned Consultant further submitted that the applicability of service tax on the transaction had been taken up by MSRTC with the Commissioner of Service Tax, Mumbai and vide letter dated 29/06/2009, it was clarified that the services provided in respect of contract with M/s Baba Trading Co. would come under the definition of taxable services of "support services of business or commerce" as defined under section 65 (104c) of the Finance Act, 1994 with effect from 01.05.2006. It was clarified that the liability would accrue only in respect of services rendered from May 2006 onwards. Therefore, the demand of service tax under the category of "franchisee service" is not sustainable in law. A simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is not sustainable in law and, therefore, stay be granted. 3. The learned Additional Commissioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. He submits that as per the findings recorded by the Commissioner, in the invoices issued by the appellant for providing the courier service, the names of MSRTC, the appellant and the sub-licensee M/s ShriSai Transport and Courier Pvt. Ltd. are mentioned. Therefore, it is clear that the appellant is representing MSRTC and that representational right on behalf of MSRTC has been franchised to M/s ShriSai Transport and Courier Pvt. Ltd. and, therefore, the services rendered by the appellant to M/s ShriSai Transport and Courier Pvt. Ltd. comes within the catego ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the parcels/goods. On the said services, for the consideration received, the sub-licensee has discharged service tax liability under the category of "courier services". Further as per the clarification issued by the Commissioner of Service Tax, Mumbai, the service comes within the category of "support service for business or commerce" and as per the clarification issued by the CBE & C, classification under business support service will be effective from 01/05/2011 and not prior to that. Thus, as per the department itself, prior to 01/05/2011, there is no liability to pay service tax on the said activity. If a service is classifiable under business support service from a given date and the said service is not carved out of any of the exis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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