JAGATJIT INDUSTRIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THIS appeal is in second round of litigation before the Tribunal against order dated 26th February, 2010 passed by the learned Commissioner consequent upon remand of the matter by the Tribunal vide Final Order ST/394/08, dated 21 -11 -2008 in the case of the appellants in Service Tax appeal No. 347/2007. Vide de novo order the learned Commissioner held the appellants to have provided Franchise service if not falls under the category of provider of Management Consultant service. While filing the appeal the appellants has also filed stay application praying for stay of realization of service tax demand of Rs. 31.22 (Thirty one lakhs and twenty two thousand) lacs followed by consequential penalty and interest.

(2.) CONSIDERATIONS were received by the appellant from two sources. On such source is from concerns who were manufacturing liquor using brand name of the appellants and second such source is from concerns who were providing facility of manufacture to the appellant for manufacture of liquor by it under its own brand name using the liquor license of the former. Agreement with these two types of cases is available at pages 102 and 171 of the appeal folder. The first category appears at page 101 of the appeal folder who were manufacturers acting under permission of the appellants using brand name of the later. The second category appears at page 171 of the appeal folder who provide facility of manufacture to the appellants procuring spirit under license of the former.

(3.) LEARNED Counsel further submitted that the first category manufacturers using brand name of the appellant pay royalty to the appellant. In the second category eases, the appellant itself manufactures goods at its own cost using facility of factory owner and earns profit or loss while certain cost is paid to the factory owner.