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2010 (11) TMI 870 - HC - VAT and Sales TaxWhether the agreement between the petitioner and the assignee-company is in respect of the transfer of the right to use the petitioner’s trademark and logo by the assignee.? Held that:- Indisputably the petitioner retained the right to use the “Nutrine” trademark and “bunny” logo for its own operations. This itself does not remove the transaction under the agreement outside the purview of section 5E. As rightly pointed out by the special counsel, a trademark or logo which is incorporeal or intangible, can always be assigned by the proprietor while retaining the right to use for itself. Furthermore, as pointed by majority in Bharat Sanchar Nigam Ltd. [2006 (3) TMI 1 - Supreme court] he determination whether a transaction amounts to transfer of right to use the goods, “. . . would depend ultimately upon the intention of the parties” and therefore, by reading one clause of the agreement, the intention cannot be gathered. On reading of the agreement between the petitioner and the assignee, the learned Tribunal correctly came to the conclusion that the consideration received as royalty for allowing the assignee the use of trademark and logo, is realized in respect of the transfer of the right to use the goods. This does not call for any interference. Appeal dismissed.
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