Brand name sales in packaging can defeat second-sale exemption where dealer's logo and shop details appear on the cover.

Sales of manufactured bakery goods packed in covers bearing the dealer's logo, shop name and product description were treated as sales under the dealer's own brand presentation, so the dealer was regarded as a brand name holder for purposes of Section 5(2) of the Kerala General Sales Tax Act, 1963. Because the packaging indicated sale under the dealer's brand indicia, the transaction could not claim the benefit of the second-sale exemption. The sales were therefore held exigible to tax under the deeming provision, and the assessee's challenge to revenue's treatment failed.

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Issues: Whether sales of bakery products packed in covers bearing the dealer's logo, shop name, and product description could be treated as sales by a brand name holder so as to attract tax under Section 5(2) of the Kerala General Sales Tax Act, 1963.

Analysis: Section 5(2) treats sales of manufactured goods, other than tea, under a trade mark or brand name by the brand name holder or trade mark holder within the State as first sales. The dealer's cover was found to contain a logo, the shop name, and the product particulars, which showed that the sale was not a mere second sale of purchased goods but a sale effected under the dealer's own brand presentation. On that basis, the statutory exemption available to second sales did not apply. The challenge based on the claimed second-seller status therefore failed.

Conclusion: The sale was correctly treated as exigible to tax under Section 5(2), and the finding was against the assessee and in favour of the revenue.

Ratio Decidendi: Where manufactured goods are sold in packaging bearing the dealer's logo or brand indicia, the dealer may be treated as a brand name holder for purposes of the deeming provision in Section 5(2), and the second-sale exemption is unavailable.

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