2020 (3) TMI 1100 - SCH - Service Tax

Valuation - Franchise services - Whether bifurcating the amount of weekly gross sales into the payment of royalty (@ 8% thereof) and the payment towards Franchise Advertisement Fund (@ 4.5% thereof) takes the later value out of the ambit what is called as transaction value/the gross value? - It was held that The amount of weekly gross sales @ 4.5% but for franchise advertisement fund is nothing but the part of gross value of the contract for providing the franchise service and, hence, was equally taxable as 8.5% of the said weekly gross sales is taxable. HELD THAT - There are no reason to interfere with the impugned order(s) passed by the Tribunal - appeal dismissed.

Summary

The Supreme Court of India dismissed the appeals and declined to interfere with the Tribunal's orders. Pending interlocutory applications were disposed of. (Citation: 2020 (3) TMI 1100 - SC Order)