Unregistered brand names can trigger deemed first-seller liability under sales tax law when used to identify goods for sale.

Liability under section 5AA of the Andhra Pradesh General Sales Tax Act, 1957 arises when a dealer holds and uses an identifiable trade mark or brand name on goods sold at a point other than the first sale. Registration of the trade mark is not a condition precedent, so an unregistered brand name can still attract deemed first-seller treatment for sales tax purposes, with credit available for tax already paid at the preceding point. Section 27 of the Trade Marks Act, 1999 does not prevent this tax consequence, because it concerns enforcement of rights in an unregistered mark rather than its use as a sales-tax identifier.

---

---

Issues: Whether liability to tax under section 5AA of the Andhra Pradesh General Sales Tax Act, 1957 depends on registration of the trade mark, and whether a dealer who sells goods under an unregistered brand name is to be treated as a trade mark holder and deemed first seller.

Analysis: Section 5AA fastens liability on a dealer who holds the trade mark or patent and sells goods at any point other than the first point of sale, deeming him to be the first seller for tax purposes, with credit for tax already paid at the preceding point. The provision does not make registration of the trade mark a condition precedent. The protection under section 27 of the Trade Marks Act, 1999 concerns enforcement of rights in an unregistered mark and does not negate the existence or use of such a mark for sales tax purposes. Since the goods were sold under the name printed by the dealer, the sales were identifiable with a trade mark for the purposes of section 5AA.

Conclusion: The dealer was liable under section 5AA notwithstanding absence of registration of the trade mark, and the revision failed.

Ratio Decidendi: For the purpose of section 5AA of the Andhra Pradesh General Sales Tax Act, 1957, registration of the trade mark is not required; use of an identifiable trade mark or brand name by the dealer is sufficient to attract deemed first-sale liability.

---