2007 (2) TMI 84

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....e required to pre-deposit service tax amount of Rs. 52,01,026/- and equivalent penalty under Section 78 of the Act, apart from penalties under Sections 76 & 77 of the Act. The allegation against the appellant is that they had also engaged in commercial concern under the "franchise" agreement with their agents and the same has been covered under the Heading "Franchise Services". The contention of t....

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....ey have produced enormous documents to show that they have received single payment only as their commission which includes franchise charges. Therefore discharging separate service tax under separate heading of "franchise services" is not correct in law. The learned Counsel argues in great detail and submits that the service tax on franchise agreement is unsustainable. Further he submits that they....

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....ngs on record. Further on our perusal of the records, we find that there is detailed finding with regard to the enormous documents. In view of the facts and circumstances of the case and on submissions made by both the sides, we cannot say at this stage that the appellants have strong case on merits for granting waiver of pre-deposit of the amounts. Further the Revenue interest is also required to....