Brand name sales tax liability turns on use of the brand at sale, not trademark registration or manufacturer ownership.

Section 5(2) of the Kerala General Sales Tax Act applied where plastic moulded chairs were sold under the assessee's brand name at the point of sale, because the factual record showed the assessee had affixed the brand, used branded presentation, and acted as the brand name holder for those sales. Registration of the brand name was not necessary for the provision to operate, and the agreement relied on by the assessee did not displace the finding that the Kerala manufacturer lacked the right to market the goods under that brand. The assessee was therefore liable to tax, the Tribunal's order was found erroneous, and the Revenue's revision succeeded.

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Issues: Whether sales tax under section 5(2) of the Kerala General Sales Tax Act was payable on resale of plastic moulded chairs sold under the brand name "Regal", including where the brand name was claimed to be unregistered and the manufacturer was asserted to be the brand user.

Analysis: The assessee had affixed the brand name "Regal" on the chairs, fixed rubber bushes before sale, and sold the goods under its own branded presentation. The factual record, including inspection materials and purchase details of stickers and rubber bushes, showed that the assessee was the brand name holder for the sales in question. The statutory purpose of section 5(2) was to levy tax at the point of sale by the brand name holder at the real market value, and prior authority had already held that registration of the brand name was not necessary for applicability of the provision. The agreement relied on by the assessee did not displace the factual finding that the Kerala manufacturer had no right to market the goods under the respondent's brand name.

Conclusion: The assessee was liable to tax under section 5(2), and the Tribunal's order was erroneous.

Final Conclusion: The revision filed by the Revenue succeeded and the assessment as confirmed in first appeal stood restored.

Ratio Decidendi: For section 5(2) liability, what matters is whether the goods are sold under the assessee's brand name at the point of sale by the brand name holder, not whether the brand name is registered or whether the manufacturer independently owns the brand.

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