Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1015 - HC - VAT and Sales TaxWhether Sales Tax is leviable on the assessee on the amount received by the assessee as “brand franchisee fees” from CBUs (Contract Bottling Units) in case of manufacture of beer? Held that: - no sales tax would be leviable on the assessee on the amount received by the assessee as “brand franchisee fees” from the CBU in case of manufacture of beer - reliance placed in the case of M/s.United Breweries Limited vs. State of Karnataka [2015 (11) TMI 754 - KARNATAKA HIGH COURT], where it was held that The manufacturers (CBUs) do not get effective control of the brand name for full commercial exploitation. As such, it cannot be considered as 'sale' of intangible goods by the assessee, which would be subject to Sales Tax under the KST Act. Appeal dismissed - decided in favor of assessee.
|