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2014 (4) TMI 594 - SC - VAT and Sales TaxLeviability of Tax – Sales tax on Brand name holder & Licensee - Tax u/s 5(2) the Kerala General Sales Tax Act, 1963 – Interpretation of Section 5(2) of KVAT Act - Brief Facts - M/s. Bristo Foods Pvt. Ltd. has license and is permitted to use the branded name "CRYPTM', of the assessee herein - The licensee manufactures the goods, namely, confectioneries and effects supply of sale to the brand name holder - It is the brand name holder, who affects the sale of the confectioneries which are to be taxed as Item 39 of the First Schedule to the Act within the State - Held that:- The said sub-Section speaks of a sale made by a brand name holder or the trade mark holder within the State - The Legislature deems that such a sale by the brand name holder or the trade mark holder shall be the first sale within the State - In the opinion of SC this is the only possible construction that can be given to Section 5(2). It is the brand name holder, who has to pay tax u/s 5(2) of the Act - If for any reason M/s.Bristo Foods Pvt. Ltd. has paid the tax while affecting the supply of the manufactured commodity to assessee, assessee and M/s Bristo Foods Pvt. Ltd. can approach the authorities for claiming the refund of the tax paid by them – There is not any infirmity in the impugned judgment and order passed by the High Court - Accordingly, the appeal is dismissed – Decided against assessee.
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