Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Kerala General Sales Tax Act 1963 — s.5(2) — |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Kerala General Sales Tax Act, 1963 — s.5(2) — Levy of tax on sale of goods — Sale af home appliances by appellant company under brand name ‘S’— Appellant company purchased products from company ‘V’, holding company which brings the goods to the State on stock transfer and sell entire goods to its subsidiary, appellant company — Claim of second sale exemption by appellant ~ Case of the appellant-Company that it is not the holder of the brand name ‘S’ ~ Assessing authority held that appellant company is the brand name holder of ‘S’ and thus, turnover of items sold under ‘S’ brand name to be treated as first sale u/s, 5(2) — Tribunal held in favour of the appellant company, whereas High Court upheld the order passed by the Assessing Authority — On appeal, held: Under s. 5(2) if the conditions are satisfied that sale of the manufactured goods is under a trade mark or brand name and is within the State, the sale by the brand name holder or the trade mark holder shall be the first sale for the purposes of the KGST Act — Objective of s. 5(2) is to assess the sale of branded goods by the brand name holder to the market and the inter se sale between the brand name holders is not intended to be covered by s. 5(2) — When _ the goods are sold under the brand name, necessarily, it has to assume that the marketing company is the holder of the brand name or has the right to market the products.in the brand name because, it is the first company introducing the products in the market — On facts, marketing is actually done by fully owned subsidiary and/or a group company of the holding company, which was allowed to use the brand name ‘S’ ~ Thus, tax invoking s. 5(2) rightly levied on the appellant-Company for the relevant period since it is proved beyond reasonable doubt that the appellant-Company is the brand name holder of “S” — Order passed by the High Court upheld. |
Judge | Hon'ble Mr. Justice R.K. Agrawal |
Neutral Citation | 2016 INSC 991 |
Petitioner | Kail Ltd. (formerly Kitchen Appliances- India Ltd.) |
Respondent | State Of Kerala Represented Thrgh. Jt. Commr. (law) |
SCR | [2016] 5 S.C.R. 865 |
Judgement Date | 2016-10-26 |
Case Number | 4283-4284 |
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