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2019 (8) TMI 816 - AAR - GSTBenefit of exemption (NIL rate) from GST - frozen seafood sold in packages to institutional customers, without bearing the brand name - Notification Na 2/2017 (Central Tax Rate / Integrated Tax Rate / Stare Tax Rate) dtd.28th June, 2017 - HELD THAT:- It is established that the goods sold by a brand name holder, without any brand name, has comparable goodwill or reputation in connection with the product, service or business with which it is used - even by removing the brand names from packaging of the seafoods, the applicant still enjoys the advantage attached to the brand name ‘ABAD’. The mention of name ‘ABAD’ on the packages, as manufacturer of these goods clearly indicates the connection between the said goods with the applicant in the course of trade as they are already having a registered brand in the name of ‘ABAD’ which was being displayed on the packages of frozen seafood till now. The customers, by reading the name on the packages as ‘ABAD’, would be in a position to identify the said goods as belonging to the reputed brand ‘ABAD’ even in the absence of the logo of that brand on the goods. As the product has direct connection with brand name holder, the use of name ‘ABAD’ on packages can be considered as brand name. The scrutiny of surrounding circumstances clearly shows that the package of frozen seafoods, even though without affixing a registered brand on them, will be considered as bearing the brand “ABAD”. Therefore, visible manifestation of brand name is not compulsory on the package. Even an ordinary name is sufficient. As per S.R.O.No.361/2017, SI.No.20, and the subsequent amendment by Notification No.42/2017 CT (Rate) dtd.14-11-2017, exemption is eligible only for supply of fresh or chilled fish. Frozen fish sold in unit container under brand name is taxable. The main difference between chilling and freezing is that of temperature. Ice crystals are formed while freezing. This is not so in the case of chilling. Supply of frozen seafood in packages by a brand name holder is not eligible for exemption for the mere reason that the supply to a particular category of customers are made without inscription of Brand or Trade Name. M/s.Abad Fisheries Private Limited, the applicant herein, is a registered brand name holder. The company is selling frozen sea food in packed unit containers under the brand name to retail customers and selling the same products to institutional customers without printing brand or trade name in the packet - the supply of frozen seafood in packages to institutional customers contain name of the company and contact details for customers which are statutory requirements. The presence of company name is sufficient to ensure that the product procured belongs to the ‘brand guardian’ and it cannot be considered as not bearing a brand name.
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