Brand name holder under sales tax law includes a franchisee using the mark under licence for consideration.

A franchisee authorised to use and market products under another concern's brand name for consideration can be treated as the "brand name holder" under section 5(2) of the Kerala General Sales Tax Act, 1963. The Court rejected the restrictive view that only the absolute owner of the brand could fall within that term, holding that the provision must be read to cover commercial arrangements where brand names are licensed or assigned. On that interpretation, tax liability attached to the respondent as the person holding and using the brand name during the relevant period, and the assessments were restored.

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Issues: Whether the respondent, a franchisee permitted to manufacture and sell ice cream under the brand name of another concern, was the "brand name holder" liable to tax under section 5(2) of the Kerala General Sales Tax Act, 1963.

Analysis: The respondent had entered into a franchise arrangement under which it was authorised to use the brand name for consideration and to market products manufactured under that brand. The term "brand name holder" in section 5(2) was held not to be confined to the absolute owner of the brand name. The provision was read in the context of commercial arrangements where brand names are licensed or assigned, and the legislative intent was taken to be to levy tax at the point of sale by the person holding and using the brand name for the relevant period. The narrow view that only the owner could be treated as the holder was rejected as defeating the purpose of the provision.

Conclusion: The respondent was liable as the brand name holder under section 5(2), and the revision cases were allowed with restoration of the assessments.

Ratio Decidendi: For the purpose of sales tax liability under section 5(2) of the Kerala General Sales Tax Act, 1963, a franchisee or assignee authorised to use a brand name for consideration can be treated as the brand name holder, and the term is not confined to the original owner of the brand.

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