TaxTMI 
TaxTMI 
2017 (9) TMI 1561
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.... Jumbo Kids is a body constitute by Anandilal & Ganesh Podar Society who entered into an agreement with various educational institute to whom they have provided the Franchise for Pre-school activities under the brand name of Podar Jumbo Kids for which the appellant being a franchisor charging the franchise fees. The Revenue has issued a show cause notice it was culminated into adjudication order wherein it was held that the arrangement between the appellant and educational institute is of franchise agreement accordingly the franchise fee is liable for service tax. Being aggrieved by the order-in-original the appellant filed appeal before the Commissioner (Appeals), who also concurring with the views of the adjudicating authority upheld the ....
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....emand is also legal and correct. 4. We have carefully considered the submissions made by both the sides. We find that as per the agreement, the appellant is providing the technical school of education as well as their brand name Podar Jumbo Kids to the franchisee against which the appellant is collecting the franchise fee. The definition of Franchise reads as under: "(47) "Franchise" means an agreement by which (i) 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....
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...., identified with any other person. As per the agreement in clause (h) of an obligation to be undertaken by the franchisee shall not be entitled to allow any sub-franchisee entered into any arrangements whatsoever with any other person or party for conduct of Podar Jumbo Kids with a view to sub franchising or sub delegating the rights and duties granted to the franchisee under this agreement. As per this clause of the agreement the sub-clause (iv) of the definition of franchisee also stands fulfilled. Therefore in our considered view the service is clearly falls under the category of franchise service i.e. liable for service tax. As regard the judgments relied upon by the Ld. Chartered Accountant in the case of St. Peter's Educational S....
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....ith any other person. On 20-6-2003, Board Circular No.59/8/2003-S.T. was issued to clarify the contours of new taxable services introduced pursuant to the Finance Act, 2003, including "franchise service", brought into force w.e.f. 1-7-2003. This circular states that franchise service as defined in Section 65(47) of the Act sets out four generic ingredients and unless all the four ingredients of the sub-section are satisfied, an agreement cannot be called "franchise" agreement. Revenue does not contest this proposition, in view of the clear definition of "franchise" w.e.f. 1-7-2003, until its redefinition w.e.f. 16-6-2005. Since the assessee, under the terms of the agreements receives an annual fee from the other party to the agreement....
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....he assessee and the use of these is prohibited to the other party for establishing branches or granting sub licenses. Clause 7(p) and (r) clearly stipulate that amongst the obligations of the other party is the clear obligation to ensure that no other educational or other institution, connected with the assessee purports to claim an association with the school, to be established under the agreements; and the other party also undertakes not to cause or use, connect, associate or relate the name, logo or motto of the assessee with any other activity commercial or otherwise, other than for the School to be established under the agreement, either in the media, advertisements, greeting cards or any other means of communication, including but not....