9911796707
TMI Blog2006 (1) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... Sankhla, SDR, for the Respondent. [Order per : C.N.B. Nair, Member, (T)]. The applicant M/s. Nirulas Corner House Pvt. Ltd. manufactures sugar confectionery, assorted chocolate, cookies and biscuits, cakes and pastries which are liable to excise duty. The duty demand in the impugned order is in regard to these items sold to their franchisees. The basis of the demand is that the amounts c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and their remuneration. - Designing of food facilities. - Advice on the functional design of the food units, overall area allocations, interiors, HVAC design etc. - Advice on setting up of all the control systems for the food unit. - Selection and training of staff. Architect s and consultants design and consultancy fees are to be paid by the Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Further in view of the fact that the Franchisees are paying back 8.5% of the gross sale to the manufacturer, it further strengthens the reasonable belief that the Franchisees are an extended arm of the manufacturer and additional consideration is flowing back to the manufacturer. 3. The contention of the applicant is that the aforesaid payments are exclusively in relation to consultancy servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endering a variety of assistance through the consultancy and oversight of the operations of the franchisees. This is made further clear by the fact that the payments are not dependent upon or relatable to the purchase of manufactured goods sold by the applicant but are in regard to the total turn over of a franchisee. We also feel that the decision of the judgment of the Apex Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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