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2. Revenue issued a Show Cause Notice alleging that the service rendered is covered by the definition of franchisee service. Relevant sub-sections of Finance Act, 1994 are reproduced below:-

taxable service means any service provided or to be provided to a franchisee, by the franchisor in relation to franchise. {Section 65(105)(zee} Franchise means an agreement by which  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 operation to franchisee, including know-how, method of operation, managerial expertise, marketing, technique or training and standards of quality control except passing on the ownership of all know-how to franchisee;
(iii) the franchisee is required to pay to the franchisor, directly or indirectly, a fee; and
(iv) the franchisee is under an obligation not to engage in selling or providing similar goods or services or process, identified with any other person. {Section 65 (47)} Franchisor means any person who enters into franchise with a franchisee and includes any associate of franchisor or a person designated by franchisor to enter into franchise on his behalf and term franchisee shall be construed accordingly. {Section 65(48)}.