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TMI Blog2013 (10) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... e five appeals have been taken up 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 cafi, making and selling coffee and other eatables under the brand name 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 Auxiliar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ABCTCL. 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 Cafi 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 drew ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 Cafes are entirely run by Cafi 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- (i)Promotion or marketing or sale of goods or provided by or belonging to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, 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 or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision and includes services as a commission agent, but does not include any information technology service and any activity that amounts to manufacture within the meaning of clause (f) of section 2 of the Central Excise Act, 1944. Explanation For the removal of doubts, it is hereby declared that for the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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