https://www.taxtmi.com/caselaws?id=762829 CESTAT Delhi held that advertisement contribution amounts paid by a franchisee for promoting its own outlets cannot be included in the valuation of franchise services for service tax purposes. The tribunal found that consideration must flow from service recipient to service provider, which was absent here since the appellant was advertising its own business outlets. The demand was set aside as the show cause notice was time-barred, vague, and wrongly invoked Rule 5 of Valuation Rules 2006, which Delhi HC had declared ultra vires. Appeal allowed. en-us Thu, 05 Dec 2024 00:00:00 +0530 Sat, 07 Dec 2024 10:15:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762829 CESTAT Delhi held that advertisement contribution amounts paid by a franchisee for promoting its own outlets cannot be included in the valuation of franchise services for service tax purposes. The tribunal found that consideration must flow from service recipient to service provider, which was absent here since the appellant was advertising its own business outlets. The demand was set aside as the show cause notice was time-barred, vague, and wrongly invoked Rule 5 of Valuation Rules 2006, which Delhi HC had declared ultra vires. Appeal allowed. Case-Laws Service Tax Thu, 05 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762829