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TMI Blog2017 (9) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... Transasia (I) Ltd. (MTIL) in terms of the contract entered into by them, for publication of in-flight magazine "Swagat", for the appellant. 2. The brief facts of the case are that the appellant entered into an agreement with MTIL, which envisaged print and delivery of "Swagat" magazine to the appellant on a monthly basis. MTIL shall undertake print and publication and delivered magazine to the appellant as per the specifications agreed upon and having contents approved by the Joint Editorial Board. This magazine is intended for circulation on board, the flights operated by the appellant and also in the airlines lounges. MTIL is allowed all the advertisement proceeds in the magazine. The appellant shall have the right to publish two pages o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Delhi High Court in the case of Delhi International Airport Pvt. Ltd. - WP(C ) 2516 of 2008 dated 14.02.2017, the ld. Counsel submitted that MTIL has acted in their own capacity and cannot be called as franchisee of the appellant. He further submitted that the appellant entertained a bonafide belief regarding non-liability of the service tax on this transaction and accordingly, the demand is partly time barred. He submitted that the demand for extended period and penalties are not sustainable against the appellant as they are Government of India Enterprise and no malafide can be attributed. 5. Ld. AR for the Revenue submitted that from the terms of the agreement, it is very clear that the appellants authorized MTIL to canvass and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagerial expertise, marketing technique or training and standards of quality control except passing on the ownership of all know-how to franchisee; (iii) The franchisee is required to pay to the franchisor, directly or indirectly, a free; and (iv) The franchisee is under an obligation not to engage in selling or providing similar goods or service or process, identified with any other person; 65(47) Applicable from 16.06.2005 "franchise" 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; 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious clients. In the magazine, it is clearly printed that "Swagat (meaning 'welcome'), in-flight magazine of Air India". Publication of in-flight magazine having logo and title of the airline company is very much part of the airlines business of the appellant. This part of the business is being represented to the advertisers through MTIL. MTIL is paying a fixed monthly amount to the appellant for permitting the usage of the appellant's name and the magazine for generating the revenue. We find that the scope of franchisee is very wide as can be seen from the above statutory provisions. As such, we are of the considered opinion that the amount received by the appellant from MTIL is liable to be taxed under the said tax entry. We uphold the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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