Merely right confirmed on party to sale of goods or service undertaken doesn’t make it a franchisee agreement

ITW India Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) CESTAT Ahmedabad held that merely because by an agreement a right is confirmed on the party to the sale of goods or service undertaken was not ipso-facto bringing the agreement within the ambit of the franchisee. Facts- During audit of the appellant’s statutory records, financial ledger etc., the Revenue’s audit team noticed that appellant have raised debit notes to its various distributors and collected amount in the name of royalty from them. It was also noticed that appellant have entered into agreem...