2015 (7) TMI 853 - AT - Service Tax

Demand of service tax - Franchisee service - whether franchiser is required to pay service tax on the sale of various proprietary items such as pizza dough as also cheese, etc. when the same are being sold by him to the franchisees - Held that - sale of material, on which the appellant has also admittedly discharged sales tax, cannot be included in the value of Franchise Services . Accordingly, we dispense with the condition of pre-deposit - stay granted.

Summary

The Appellate Tribunal CESTAT Bangalore ruled that the appellant, who has franchisees paying service tax on franchise agreement consideration and continuing royalty, is not required to pay service tax on sales of proprietary items like pizza dough and cheese to franchisees. The tribunal dispensed with the pre-deposit condition and allowed the stay petition.