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TMI Blog2011 (1) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... fee from the dealers fixed at 25% of the profit earned in resale of pre-owned cars - Prima facie, the applicants are rendering the franchise services - However, prima face, the value of warranty fee may not be part of service charges in connection with franchise services - Decided against the assessee. - ST/1138/2010 - ST/70/2011 - Dated:- 21-1-2011 - Archana Wadhawa, M Veeraiyan, JJ. For A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing expenses. 2.2 The MTV outlets make profits in selling the re-furbished and re-conditioned vehicles and out of the profits so earned the applicant received 25% as its share referred to as management fee. In addition, the applicant is receiving amounts as warranty fee at the rate of Rs.1,100/- in respect of each vehicle sold from MTV outlets. Accordingly, the applicant has received a sum of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proprietary system does not amount to rendering of service; even if the same is treated as rendering of service, the same does not come under the category of franchise service; the warranty fee, at any rate, could not be treated as part the value of so-called franchise service. He also submits that the department has collected the detail regarding collection of warranty charges from the balance- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit earned in resale of pre-owned cars. Prima facie, the applicants are rendering the franchise services. We, however, find that, prima face, the value of warranty fee may not be part of service charges in connection with franchise services. The submissions of the learned Advocate that the extended period cannot be invoked needs to be looked into in detail at the time of final hearing and it is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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