2015 (12) TMI 492

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....eement with M/s Malkoh Marketing (P) ltd. on 01/04/2003 for transfer of technical know-how from respondents to M/s Malkoh Marketing (P) Ltd. and for marketing of products of respondents by receiving one-time franchise charges of Rs. 65 lakhs. The franchise services became taxable w.e.f. 01/07/2003 and the Department entertained the view that the one-time consideration received by the respondents for the services to be rendered is subject to levy of service tax. Accordingly, a show cause notice dated 14.2.2007 was issued to the respondents. After adjudication, the order passed by the original authority confirmed the demand of service tax along with interest and also imposed equal amount of penalty. The respondents filed appeal before the Com....

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....t period which is reproduced as under: " taxable service means any service provided or to be provided to a franchisee, by the franchisor in relation to franchise". (Section 65(105 )( zee) "Franchise means an agreement by which - Franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trade mark, service mark, trade name or logo or any such symbol, as the case may be, is involved;  (ii) the franchisor provides concepts of business operation to franchisee, including know-how, method of operation, managerial expertise, marketing, technique or training and standards of quality control except pass....