Trade Mark Franchise - VAT vs Service Tax
A Single Judge of the High Court had held that VAT is leviable on royalty charges received for use of trade mark, even though the petitioner had paid Service Tax. Whether Service Tax was payable or not was not an issue before the judge and so he did not touch that issue.
On writ appeal, the Division Bench reversed the Single Judge's order and held that VAT was not payable. You have to wait till Monday for this landmark judgement.