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TMI Blog2013 (12) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... together. 2. Appellants in all the cases are owner of certain property. Appellants have entered into an agreement (separate for each appellant) titled as "The Franchise Agreement......" with M/s. Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). The property belonging to appellants were given to M/s. Amalgamated Bean Coffee Trading Company Ltd. to run café, making and selling coffee and other eatables under the brand name of 'Cafe Coffee Day'. Appellants have produced copy of the said agreement. 3. Show cause notices were issued to the appellants demanding service tax under the category of Business Auxiliary Service. In four appeals demand is classifying the service in the last clause of Business Auxiliary Service as Auxiliar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CTCL. They also contended though certain paras in the agreement gives an impression as if they have some role to play in day to day working of the "Café Coffee Day" outlets, but they have no role whatsoever to play. All the out lets are run by the staff of M/s. ABCTCL, they only collect the money and remit it to the main company. In view of this position, the activity cannot be classified under business auxiliary service. Ld. Counsels further contended that service is renting of immoveable property which taxed from 1.6.2007. and they have started paying service tax under this category from the said date. 5. Learned A.R. reiterated the various points made in the impugned orders as well as the original orders. Ld. A.R. particularly dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hare or fixed rent to the landlords with the applicable service tax. This expenditure is accounted as rent in their books of accounts. The landlord/shop owners do not provide any service other than the renting of immovable property to M/s. Amalgamated Bean Coffee Trading Company Limited. All the activities of the entire Cafés are entirely run by Café Coffee Day. All concerned registrations, licenses are in the name of M/s. Amalgamated Bean Coffee Trading Company Limited.". 7. We observe that the demand has been raised under Business Auxiliary Service. The definition of Business Auxiliary Service w.e.f. 1.7.2003 was as under:- "Business Auxiliary Service means any service in relation to, - &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .6.2005 the following Explanation added to sub-clause (iv) Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client; (v) production or processing of goods for, or on behalf of, the client; With effect from 16.6.2005 sub-clause (v) shall read as under: "production or processing of goods for, or on behalf of, the client" (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or goods produced or provided by, belonging to the client. We also do not find any auxiliary service relating to any of the clauses mentioned in the definition has been provided by the appellants. They have not provided any service of the type enumerated in the last clause of the definition. Under the circumstances, we are unable to accept the Revenue's contention that the service provided by the appellants are covered under Business Auxiliary Service. 8. Learned Counsels for the appellants have also raised certain other arguments and few case laws. We do not consider it necessary to go into such details as we find that on merits itself appellants are not providing any business auxiliary service so as to be chargeable to service tax. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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