2008 (4) TMI 189

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....the Appellant. Shri J.P. Gregory, JCDR, for the Respondent. [Order per: P.G. Chacko, Member (J)]. - There are two applications before us, both by the appellants, one for waiver of predeposit and stay of recovery and the other for early disposal of the appeal. We take up the first application. 2. The impugned demand is of service tax in the category of "franchise" [Section 65(47) of the Fi....

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....ed by the appellants from the so-called "franchisees". Admittedly, the so-called "franchisees", who are described by the appellants as mere 'agents', had rendered courier service of picking and delivering articles covered by consignment notes called "waybills" and the amounts collected from the consignors were passed on to the appellants after deducting certain expenses. Service tax on the courier....

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....ed fee for the franchise. The impugned demand is on this basis. 3. Learned counsel has urged that the real nature of the transactions has to be understood without reference to the words or terms used in the agreements. On other hand, learned JCDR would strictly go by the terms like "franchise" used in the agreements and would submit that the liability of the appellants to pay service tax in thi....

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....f the Superintendent to the appellants to advise their franchisees to get themselves registered with the Service Tax Cell. It would appear that the department had occasion to see the so-called 'franchise agreements' entered into between the appellants and the persons through whom courier service was allegedly rendered to clients. It is the case of the appellants, reiterated today by their counsel ....