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TMI Blog2018 (3) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... into Franchisee Agreement with various franchisees appointed by them in India. Department took the view that the gross amounts collected by the appellant including admission fee, course instructor fee, tuition fee etc. would be eligible for service tax under the category of Franchisee Service under section 65(47) of the Finance Act, 1994. The proposals initiated in the show cause notice were confirmed by the original authority vide order dated 26.12.2007. However, in appeal, Commissioner (Appeals) vide order dated 9.12.2009 (impugned order) allowed deduction of the amounts relating to sale of course materials / books to the Indian franchisees by the appellant and remanded the matter to that extent to the original authority for requantificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in as per clause 10, the IMA royalty is collected at 25% of the prescribed tuition fee. This amount collected by them as franchisor fee from all their franchisees in India. They have no dispute on paying service tax liability on this amount. 3. On the other hand, ld. AR Shri S. Govindarajan supports the impugned order. He draws attention to the decision of the Tribunal in the case of Jetking Information Ltd. Vs. Commissioner of Central Excise, Mumbai 2007 (7) STR 314 (Tri. Mumbai) which has been admitted by the Hon ble High Court of Bombay as reported in 2009 (13) STR J72 (Bom.). The ld. AR submits that the admission fee, tuition fee and competition fee are very much part of the franchisee service and therefore they should form part of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admission fee, tuition fee, competition fee and course instructor fee charged by the appellant either from their franchisees or from the instructor cannot then form part of the value to be adopted for levying service tax on franchisee service. 5.2 Coming to the case law relied upon by the ld. AR, we find that the same relates to a case where there was a dispute in nature of service provided by the appellant therein. The Tribunal in that case held that the service provided by the appellant therein were in the nature of franchisee service as defined under section 65(105)(zze) of the Finance Act. There is however no dispute on the nature of the service in this appeal. What is only disputed is which amounts would form part of franchisee servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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