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TMI Blog2015 (12) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... g (P) Ltd., does not stipulate any such condition imposing an obligation upon M/s Malkoh Marketing (P) Ltd. On such score, the agreement does not fit into the definition of franchise agreement as it stood during the relevant period. Since the agreement does not satisfy condition No. 4 of the definition of franchise agreement, the services provided in pursuance of the agreement also will not fall into the category of franchisee service. The demand has been rightly set aside by the Commissioner appeals and the impugned order calls for no interference. - Decided in favour of assessee. - Appeal No.ST/873/09-CUS (DB) - FINAL ORDER NO.53684/2015 - Dated:- 19-11-2015 - Mr.R.K.Singh, Member (Technical) And Ms.Sulekha Beevi C.S., Member (Judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 65 lakhs. The said amount being a one-time franchise fees received for services to be provided, the respondents are liable to pay service tax as franchise services became taxable with effect from 01/07/2003. The explanation added to Section 67 of the Finance Act, 1994, makes it clear that the gross amount charged for the taxable service shall include any amount received for the service before, during or after providing such service. Therefore though respondents had entered into the agreement and received consideration prior to 01/07/2003, as the services are rendered subsequently, the amount received is subject to levy of service tax being the consideration received before rendering of the services. That therefore the view taken by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chisee 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)}. 5. It is submitted by the Ld. counsel that the 4th condition in the definition was not fulfilled in the present case and therefore the agreement would not come within the definition of franchise agreement and the services would not fall within the meaning of franchise service. That therefore the transaction was not subject to levy of service tax. 6. We have heard both sides and perused the records carefully. On examining the terms and conditions of the agreement we have to agree that the arguments advanced by the Ld. counsel on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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