S. RAVINDRA BHAT

1. The appeal (STA 27/2013) and writ petitions, (W.P.(C)3404/2015, W.P.(C)3408/2013, W.P.(C) 4453/2013 and W.P.(C)10726/2006) all are concerned with the same question of law. Resultantly, they were heard alongwith STA 26/2013.The question of law in STA 26/2013, which is the lead case in this batch, is as follows:

Whether the Tribunal was right in holding that consideration received under the franchise agreement was for transfer of right to use the goods, i.e., the trade mark, under the Delhi Sales Tax on Right to Use Goods Act, 2002 and under the Delhi Value Added Tax Act, 2004?

2. The appellant is a wholly owned subsidiary of McDonald’s Corporation, Delaware (a term hereinafter referred to as “McDonald’s or “the Appellant” in respect of the two appeals, i.e. STA 26-27/2013). It entered into joint venture agreements, with Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited and Golden Kitchens Private Limited; and held 50% of their capital, during the period under consideration. McDonald’s also entered into franchise agreements with various franchisees to allow them to adopt and use the “McDonald’s system”, for the purpose of o