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TMI Blog2010 (9) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 84 of the Finance Act, 1994. The demand is for the period from May to November, 2006. In adjudication of a show cause notice, which had raised the demand on KITCO, the original authority had dropped the proposals. Its order was revised by the Commissioner after issuing a show-cause notice to the party. Hence the demand of tax and penalties. 2. After examining the records and hearing both sides, we have found a formidable ground for the appellant against the above demand. The original show-cause notice invoked the definition of "Franchise" as given under Section 65(47) as amended w.e.f. 16-6-2005. The original authority held that the transaction between KITCO and the so-called franchisee, namely, the Institute of Hotel Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or providing similar goods or services or process, identified with any other person. After 16-6-2005 : 'franchise' means an agreement by which the 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." It is clear from the definition of "franchise" as amended w.e.f. 16-6-2005 that many of the erstwhile requirements (prior to 16-6-2005) for a transaction to constitute "franchise" were done away with. As per the amended definition, "franchise" means an agreement by which the franchisee is granted representational right to provide se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r important aspect evident from the above agreement is that the Institute could not utilize the name or logo of KITCO or even of the Joint Venture (KITCO Hotel Management Education Project) in any materials, advertisements, hoardings, name boards or letter heads, without prior and written approval from KITCO. The Commissioner held that KITCO's logo was also displayed along with that of the Institute on the name board installed in front of the Institute and therefore, the Institute should be considered to have obtained a representational right from KITCO to provide training/coaching to the candidates. From the terms of the agreement, this view taken by the Commissioner does not appear to be correct. 5. In the result, we grant waiver of pre- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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