2016 (2) TMI 24

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....ami The appellant has filed this application for waiver of pre-deposit of entire dues. 2. The brief facts of the case are that the appellants are engaged in providing training and coaching service and registered with the service tax department. It was found that the appellant had remitted an amount of Rs. 1,68,23,658/- towards franchisee and royalty fee to their US based franchiser M/s. Crest Co....

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....ollected. The royalty amount was also to be shared between the master distributor and producer at different percentage depending upon the number of distribution by the master distributor. He submits that they have paid the entire amount of service tax on the total amount received as a consideration and only thereafter the amount was remitted to the overseas franchiser. He drew attention to Commiss....

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....or which the service is rendered by the appellant in India. The remittance paid to the franchiser for use of logo, training material, marketing etc. Therefore, he submits that the appellant have to pay service tax under reverse charge under franchisee service. 5. After hearing both sides and on perusal of the agreement dated 6.10.2001, we find that as per clause 6 of the agreement, compensation t....

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....ributors and only remitted the amount after the payment of service tax. The appellants are registered under training and coaching service in India for which they have discharged service tax and what is demanded in the present appeal is franchisee service which is clearly established as per the agreement. Accordingly, the appellants are liable to pay service tax on the amount remitted to the overse....