LAWS(CE)-2009-8-142

CCE Vs. MASTERMIND CLASSES PVT. LTD.

Decided On August 17, 2009
CCE Appellant
V/S
Mastermind Classes Pvt. Ltd. Respondents

JUDGEMENT

(1.) NONE present for the Respondent.

(2.) REVENUE being aggrieved by the order dated 18.4.2007 passed by the learned Commissioner (Appeals) who held that the service tax of Rs. 1,57,399/ - was only payable on royalty (Ref: Para 6 of Appeal order) and tax of Rs. 45,000/ - on the franchise fees is not leviable and penalty not imposable has preferred this appeal before Tribunal. Shri Sansar Chand, DR submits that Revenue does not intend to tax what that is not taxable during the material period. But "Service to be provided" being inserted in the Finance Act, 1994 w.e.f. 16.6.2005, the service tax realized by the respondent prior to providing service need to be deposited into the treasury.

(3.) HEARD Revenue and also considered paras 5 -6 of the appellate order in so far as imposition of service tax levy is concerned. Also we have examined the matter dealt with by paras 9 -10 of the appellate order. In para 5, learned Commissioner was of the view that franchise fees collected during the period prior to levy of service tax on franchise fees shall not be taxed. We are in full agreement with the said proposition. But para 5 does not disclose the evidence that has been relied upon by the Commissioner for such proposition except the submission of the respondent which received his consideration. If documentary evidence is examined thoroughly, law can be applied to the settled fact.