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2006 (11) TMI 321 - SC - VAT and Sales TaxWhether the brand owner who is an exclusive purchaser of goods manufactured, using its brand name, by a manufacturer who is exempted under section 8A or 19C is entitled to claim set off on the deemed tax paid on the purchases made from such manufacturer and is required to pay tax under section 5(3)(a), only on the value addition thereof? Held that:- Appeal dismissed. In the present case, the appellant is the owner of the brand name "Whirlpool" registered under the Trade and Merchandise Act, 1958. Under the agreement between the parties, the refrigerators and other consumer goods are got manufactured by M/s. Applicomp India Ltd. and as per the agreement M/s. Applicomp have to manufacture the products under the brand name "Whirlpool" and sell them exclusively to the appellant. M/s. Applicomp is not the registered user of the brand name "Whirlpool". Moreover, the sales made by M/s. Applicomp to the appellant, are not sales to the exclusive marketing agent or distributor or wholesaler or any other dealer but are only sales of manufactured branded goods to the brand owner. Hence, the sixth proviso and Explanation III to section 5(3)(a) are clearly not applicable.
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