2013 (12) TMI 1019

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.... all the five appeals have been taken up together. 2. Appellants in all the cases are owner of certain property. Appellants have entered into an agreement (separate for each appellant) titled as "The Franchise Agreement......" with M/s. Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). The property belonging to appellants were given to M/s. Amalgamated Bean Coffee Trading Company Ltd. to run café, making and selling coffee and other eatables under the brand name of 'Cafe Coffee Day'. Appellants have produced copy of the said agreement. 3. Show cause notices were issued to the appellants demanding service tax under the category of Business Auxiliary Service. In four appeals demand is classifying the service in the last clau....

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....ocal bodies for running café by M/s. ABCTCL. They also contended though certain paras in the agreement gives an impression as if they have some role to play in day to day working of the "Café Coffee Day" outlets, but they have no role whatsoever to play. All the out lets are run by the staff of M/s. ABCTCL, they only collect the money and remit it to the main company. In view of this position, the activity cannot be classified under business auxiliary service. Ld. Counsels further contended that service is renting of immoveable property which taxed from 1.6.2007. and they have started paying service tax under this category from the said date. 5. Learned A.R. reiterated the various points made in the impugned orders as well ....

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....n monthly rentals are paid on the basis of revenue share or fixed rent to the landlords with the applicable service tax. This expenditure is accounted as rent in their books of accounts. The landlord/shop owners do not provide any service other than the renting of immovable property to M/s. Amalgamated Bean Coffee Trading Company Limited. All the activities of the entire Cafés are entirely run by Café Coffee Day. All concerned registrations, licenses are in the name of M/s. Amalgamated Bean Coffee Trading Company Limited.". 7. We observe that the demand has been raised under Business Auxiliary Service. The definition of Business Auxiliary Service w.e.f. 1.7.2003 was as under:-    "Business Auxiliary Service mea....

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.... services, which are inputs for the client; or    With effect from 16.6.2005 the following Explanation added to sub-clause (iv)    Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client;        (v) production or processing of goods for, or on behalf of, the client;    With effect from 16.6.2005 sub-clause (v) shall read as under: "production or processing of goods for, or on behalf of, the client"        (vi) provision of service on behalf of the client; or        (vii) a service incidenta....