9911796707
TMI Blog2011 (8) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... rejected - Decided in favour of assessee. - 571-573 of 2006 - ST/361-363/11 - Dated:- 9-8-2011 - Ms. Archana Wadhwa, Shri Mathew John, JJ. Appeared for Appellant : Shri Sonal Bajaj, SDR Appeared for Respondent : Shri K.K. Anand, Advocate Per Mathew John : In this proceeding three Appeals filed by Revenue are being decided M/s Kamla Kant Co., the main Respondent, entered into an agreement with M/s K.P. Pan Flavour Pvt. Ltd. to allow the use of their trade mark for the purpose of manufacture and sale of Pan Masala (Sada) and Pan Masala Gutkha (containing tobacco) under the trade marks Rajshree , Rajshee , Supreme , Safal , Saffronic , Madhuban and Kamla Pasand . The Revenue made out a case that the main Responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the franchisor, directly or indirectly, a fee; and (iv) the franchisee is under an obligation not to engage in selling or providing similar goods or services or process, identified with any other person. {Section 65 (47)} Franchisor means any person who enters into franchise with a franchisee and includes any associate of franchisor or a person designated by franchisor to enter into franchise on his behalf and term franchisee shall be construed accordingly . {Section 65(48)}. 3. The case of Revenue is that all the four ingredients of Section 65(47) are satisfied in the case of service rendered by the main Respondent to M/s K.P. Pan Flavours (P) Ltd. and therefore they issued a Show Cause Notice demanding Service Tax amounting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Respondent but the compound used in the manufacture of Pan Masala and Gutakha was prepared in their factory by the Director of M/s Kamla Kant Co. and they were not paying anything to M/s Kamla Kant Co. for preparation of the said compounds. It is the argument of Revenue that all the facts show exclusivity of the contract and thus agreement between the Respondent and M/s K.P. Pan Flavours come under the definition of Franchisee services . 5. Ld. Counsel for the Respondent invites our attention to the contract entered by them with M/s K.P. Pan Flavour and stressed the point that as per the terms of the contract there was no condition that the Respondent should not have manufactured these products under the brand name of any o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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