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2009 (10) TMI 881 - HC - VAT and Sales TaxWhether the respondent is not liable to pay sales tax under section 5(2) of the Kerala General Sales Tax Act on the resale of plastic moulded chairs under the brand name "Regal" which the respondent got manufactured by an SSI unit in Kerala? Held that:- There is nothing to indicate in the agreement that the manufacturer in Kerala was entitled to produce and market plastic chairs in the brand name "Regal" which was the brand name exclusively used by the respondent, and that is the reason why they got stickers printed with brand name affixed on the chairs before marketing the same. In fact, not only brand name was affixed but rubber bushes were also fixed to the chairs after purchase by the respondent. Obviously, the respondent wanted to maintain a distinct quality for the product sold under their brand name and that is why improvements were made like fixing of rubber bushes to the chairs before sale by them. We are therefore of the view that after being unsuccessful in challenge against statutory provisions, the respondent distorted the facts and misled the Tribunal to get favourable orders. We therefore, allow the S. T. Revisions filed by the State by reversing the order of the Tribunal and by restoring the assessment confirmed in first appeal.
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