https://www.taxtmi.com/caselaws?id=783224 A commercial arrangement amounts to franchise service only where the recipient is granted a representational right and loses its independent identity by representing the franchisor to outsiders. On the stated facts, the agreement was only a licence to use intellectual property for production, sale, distribution and marketing, while the recipient retained business autonomy and marketing control. The licensors did not exercise the level of control associated with a franchise. The services were therefore treated as intellectual property service, and the exemption linked to payment of research and development cess was available, so the demand could not be sustained. en-us Tue, 09 Dec 2025 00:00:00 +0530 Fri, 12 Dec 2025 08:55:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783224 A commercial arrangement amounts to franchise service only where the recipient is granted a representational right and loses its independent identity by representing the franchisor to outsiders. On the stated facts, the agreement was only a licence to use intellectual property for production, sale, distribution and marketing, while the recipient retained business autonomy and marketing control. The licensors did not exercise the level of control associated with a franchise. The services were therefore treated as intellectual property service, and the exemption linked to payment of research and development cess was available, so the demand could not be sustained. Case-Laws Service Tax Tue, 09 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783224