TMI Blog2017 (9) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... tention to evade payment of service tax. However, in this particular case, the Revenue has produced sufficient evidence to rebut such presumption. It is seen that in spite of a notice issued under Section 77 of the Act, the appellant did not furnish the required details for quantification of tax liability - extended period of limitation upheld. Penalty - Held that: - the appellants had entertained a belief regarding non-liability of service tax and accordingly had not discharged the same, in time - Section 80 can be invoked for waiver of penalty imposed on the appellant. Appeal allowed - decided partly in favor of appellant. - Service Tax Appeals Nos.58928-58929/2013-DB - ST/A/55301-55302/2017-CU[DB] - Dated:- 20-7-2017 - Shri S.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed. MTIL shall not get any remuneration for this activity of printing and delivering the in-flight magazine to the appellant. However, MTIL shall pay ₹ 8.75 lakhs per month to the appellant. 3. The Revenue entertained a view that MTIL is acting as a representative of the appellant and accordingly, the amount received by the appellant, as stated, is liable to service tax under the category of Franchisee Service in terms of Section 65(105)(zze) read with Section 65(47) of the Finance Act, 1994. Accordingly, proceedings were initiated against the appellant to demand and recover service tax. The Original Authority adjudicated the case and confirmed service tax liability of ₹ 93,81,940/- and imposed equal amount of penalty und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r India and MTIL is only a representative of Air India in the eyes of the clients as well as the passengers, who peruse the said magazine. Regarding the demand for extended period, ld. AR submitted that even after repeated request the appellant did not make available the particulars. In fact, separate proceedings were initiated for imposing penalty under Section 77 for non-cooperation and also non-submission of the required data by the appellant. 6. We have heard both the sides and perused the appeal records. 7. The dispute is relating to service tax liability of the appellant on the amount received from MTIL, which is for the permission granted to MTIL to print and deliver in-flight magazine Swagat to the appellant. The statutory p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on his behalf and the term franchisee shall be construed accordingly; 65(105) taxable service means any service provided- **** (zze) to a franchisee, by the franchisor in relation to franchise; It can be seen from the above provisions that franchise represents wide variety of business arrangements. In the present case, a perusal of the terms of the agreement and the magazine published clearly indicate that the said magazine is identifiable with Airlines operation and business of the appellant. The publication of the inflight magazine is one of the activities of the appellant, who is an operator of major commercial airlines. Admittedly, provision of in-flight magazine is an essential requirement for such commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rebuttable presumption is created regarding non-existence of intention to evade payment of service tax. However, in this particular case, the Revenue has produced sufficient evidence to rebut such presumption. It is seen that in spite of a notice issued under Section 77 of the Act, the appellant did not furnish the required details for quantification of tax liability. The reasons for extended period have been recorded by the Original Authority. It is recorded that many reminders have been issued to the appellant asking for details and they have failed to provide reply to the same. We are in agreement with the Original Authority regarding sustainability of demand for extended period. 9. However, we find that the appellant also pleaded fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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