2011 (6) TMI 279

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....lants to have provided Franchise service if not falls under the category of provider of Management Consultant service. 2. While filing the appeal the appellants has also filed stay application praying for stay of realization of service tax demand of Rs. 31.22 (Thirty one lakhs and twenty two thousand) lacs followed by consequential penalty and interest. 3. Learned Counsel Shri Gulati, appearing for the appellants submits that the proceedings emanated from the show cause notice dated 4.4.2005. The notice issuing authority called upon the appellants to defend on the charge of providing "Management Consultancy" service. When the adjudication in the first round did not go in favour of the appellants they came before the Tribunal and plead....

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....nication issued by the Board has resolved the conflict about different types of modalities of manufacture carried out in Beverage industry. Two categories of cases as has been explained aforesaid was subject matter of consideration by Board. Board clarified stating that in the first category case service tax is chargeable on Intellectual property service provided. Second category cases may fall under Business Auxiliary Service. The letter of Board rules out taxing of the receipts of the appellants under the category of "Management Consultancy Service". Also drawing attention to the letter F. No. 532/70/2009-TRU dated 30.10.2009 learned Counsel submits that the profit arising out of manufacture of liquor by the appellant using manufacturing ....

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....hall squarely fall under the "franchise service" for which they are brought to the fold of law. This has been recorded in para 4.17 of the de novo order. Since appellants' claim was to follow letter of the Board as aforesaid, such proposition was also examined in para 4.5 of the de novo order. The authority below correctly examined both types of contracts under para 4.3 & 4.4 of the de novo order and properly levied service tax. 9. On the aforesaid premises learned D.R. submits that mere erroneous mention of the section or provision in the show cause notice does not vitiate the de novo adjudication when the appellant's case is governed by their own stand before the Tribunal as has been recorded in para 2 of the Tribunal's order dated 21.....