Pre-deposit waiver in trademark goodwill transfer dispute denied, with only conditional interim protection against recovery granted.

The dispute concerned whether complete waiver of pre-deposit was justified in a demand arising from transfer of goodwill connected with trademark licensing. The defined scope of "Intellectual Property Right" and "Intellectual Property Service" under the Finance Act, 1994 was examined, and the arrangement was treated prima facie as involving assignment of goodwill with the trademark and payment attributable to the right to use the trademark for a fixed period. On that basis, a case for full waiver was not established. Complete waiver of pre-deposit was declined, and only partial interim relief was granted with conditional deposit and stay of recovery for the balance pending appeal.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery in respect of the demand raised on the transfer of goodwill connected with trademark licensing.

Analysis: The defined scope of "Intellectual Property Right" and "Intellectual Property Service" under the Finance Act, 1994 was examined. The arrangement showed that goodwill was assigned along with the trademark of the business concern, and the value attributable to the right to use the trademark was payable for a fixed period. In that prima facie context, the appellant did not establish a case for full waiver of the adjudged dues.

Conclusion: Complete waiver of pre-deposit was declined. The appellant was directed to deposit Rs. 1 crore and recovery of the balance was stayed pending disposal of the appeal.

Final Conclusion: Interim relief was granted only in part, with a conditional pre-deposit requirement and protection against immediate recovery of the remaining demand.

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