Imposition of penalty unsustainable as demand sustained due to mis-interpretation of service

Kitco Ltd. Vs Commissioner of Central Excise and Service Tax (CESTAT Bangalore) CESTAT Bangalore held that imposition of penalty unsustainable as service tax is demanded due to mis-interpretation of service being classified as joint venture agreement and not a franchisee service. Facts- The appellants are registered with the Department for providing various taxable services viz., Consulting Engineering, Market Research Agency, Manpower Recruitment Agency, Management Consultant Service, etc., during the relevant period. Alleging that the appellant had provided ‘Franchisee Service’ during th...