TaxTMI 
TaxTMI 
2018 (9) TMI 1657
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....mation on website, providing private employment exchange for employers and job seekers to find the candidates and jobs respectively. They are also aiding property transactions in the websites by creating a common meeting ground for those dealing in real estate business and providing information on buying and selling of automobiles. For all these services, they had registration under the category of Advertisement Services. During the course of audit by the departmental officers, it was noticed that during 2005 - 06, appellant had outsourced their matrimony activity to other associate centers and had entered into franchise agreement with these associate centers. These associate centers are identified by the trademark 'Bharatmatrimony.com'. Th....
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.....2005 covering only those services of granting representative right to use the process identified with trademark, logo or symbol. Thus from 10.9.2004, difference has been drawn, through Intellectual Property Service were temporarily right is granted to use all intangible properties like trademark, technical know-how etc. He argued that as per the agreement, it is transfer of intellectual property right and would not fall under Franchise Service. It can be seen that promotional materials are to be supplied by franchisor and training facilities has to be arranged by franchisor which go beyond the scope of franchise service as amended from16.6.2005. So also clause 6 of the agreement stipulates service obligations on the part of franchisee. Cla....
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....ter has raised the demand invoking the extended period of limitation. In the alternative, he prayed that in any case, since the appellant was under bonafide belief that the said activity does not fall under franchise service and the department having not raised any objection in the audit conducted in 2006, he prayed that the penalties may be set aside. 4. The ld. AR Shri S. Govindarajan supported the findings in the impugned order. He adverted to the various conditions in the agreement and argued that the agreement falls within the definition of franchise service as amended with effect from 16.6.2005. Merely because the appellants have given the right to use the logo/symbol, which is Bharatmatrimony.com, it cannot be said that the agreemen....
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...."WHEREAS Franchisor is engaged, amongst other activities, in the business of providing matrimony services and has developed business plans and procedures relating to the promotion and operation of the said centers etc. for providing the above mentioned matrimony and internet based services. WHEREAS as the result of the expenditure of time, effort and money, FRANCHISOR has acquired unique experience, special skills, technique and knowledge with reference to the development, opening and operating of various BharatMatrimony Centers throughout the country. The FRANCHISEE acknowledges that he does not presently know the special skills, techniques or business policies, nor does the FRANCHISEE have business forms or access to the FRANCHISOR'S bod....