9911796707
TMI Blog2009 (11) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that: In this case, in fact, the agent/franchisee is not doing independent business but is only acting as agent for collection and delivery of parcel as agent in the courier service. Apart from appointing the agent / franchisees, the appellants are not rendering any service to the franchisees. - the assessment and demand of tax from the appellant under section 65(47) read with Section 65(105)(zze) is untenable. - 21-22/2009 - - - Dated:- 5-11-2009 - For Petitioner :SRI.PAUL MATHEW (PERUMPILLIL) For Respondent :SRI.P.GOPINATH MENON,SC,CEN.BOARD OF EX The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR The Hon'ble MR. Justice V.K.MOHANAN JUDGMENT Ramachandran Nair, J. Connected appeals are filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is 50% of service charge collected for articles collected for delivery within the State and 25% for articles collected from the State for delivery outside Kerala. Similarly for parcel collected for delivery outside India, the agents/franchisees are paid Rs.50/- for every parcel with service charges above Rs.500/- and in respect of parcels with service charges below Rs.500/-, charges payable to the agents/franchisees is only 10% of such charges. The courier service operation therefore leads to sharing of substantial amount of charges collected from the customers with the franchisees and appellant gets only the balance amount. The agreement provides for payment of remuneration to the agents/franchisees only for service charges recovered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing courier service, which is, collection of articles from customers at various places and delivery of the same at the destination requested by the customers. The counsel contended that the appellant transports goods between major centres and local collection and deliveries are done by engaging agents/franchisees. So much so, the services of agents/franchisees and appellant together will only constitute the complete courier service. Facts seen from the agreement and accepted by the lower authorities is that the courier service charges collected from the customers for booking the cargo is shared between the appellant and the agents/franchisees in an agreed manner. The question therefore to be considered is whether the service charges collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected, for rendering courier service at the hands of the appellant. Further, we do not think Section 65(47) read with 65(105)(zze) has any application in regard to rendering of courier service by appellant with the assistance of agents/franchisees. Franchise is defined in section 65(47). (47) franchise means an agreement by which - (i) 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. (ii) the franchisor provides concepts of business operation to frachisee, including know- how, method of operation, managerial expert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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