https://www.taxtmi.com/caselaws?id=396715 A licence arrangement for temporary use of intellectual property rights is classifiable as intellectual property service, not franchise service, where the recipient does not obtain a representational right to act as the licensor or lose its own identity. Limited quality supervision and control by the licensor do not, by themselves, create a franchise. Once the service falls within intellectual property service, the abatement notification for a holder of intellectual property rights applies to the extent prescribed under the Research and Development Cess framework. On that basis, the note states that service tax demand and related penalties founded on franchise classification cannot be sustained. en-us Wed, 27 Nov 2019 00:00:00 +0530 Mon, 31 May 2021 13:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396715 A licence arrangement for temporary use of intellectual property rights is classifiable as intellectual property service, not franchise service, where the recipient does not obtain a representational right to act as the licensor or lose its own identity. Limited quality supervision and control by the licensor do not, by themselves, create a franchise. Once the service falls within intellectual property service, the abatement notification for a holder of intellectual property rights applies to the extent prescribed under the Research and Development Cess framework. On that basis, the note states that service tax demand and related penalties founded on franchise classification cannot be sustained. Case-Laws Service Tax Wed, 27 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396715