Taxability of trademark use rights: non-exclusive brand licence can still be treated as transfer of the right to use goods.

A writ petition challenging sales tax proceedings was not rejected on the basis of alternate statutory remedy because the reference remedy under section 61(1) was not shown to be complete and efficacious, and the petition was already fully argued on the merits. On the substantive issue, the Court treated the agreement for use of the TATA brand marks and indicia as a taxable transfer of the right to use intangible goods under the 1985 Act, holding that exclusivity or an unconditional transfer was not required. The decision distinguished Bharat Sanchar Nigam Limited and approved the view that transfer of trademark use can attract sales tax.

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Issues: (i) Whether the writ petition should be rejected on the ground that an alternate and equally efficacious statutory remedy under section 61(1) of the Bombay Sales Tax Act, 1959 was available; (ii) whether the agreement for use of the TATA brand marks and indicia amounted to a taxable transfer of the right to use goods under the Maharashtra Sales Tax on the Transfer of Right to use any Goods for any Purpose Act, 1985.

Issue (i): Whether the writ petition should be rejected on the ground that an alternate and equally efficacious statutory remedy under section 61(1) of the Bombay Sales Tax Act, 1959 was available.

Analysis: The availability of a statutory reference remedy did not create an absolute bar to the exercise of writ jurisdiction. The petition had already been admitted, interim relief had been considered, and the matter had been argued extensively on pleadings and written submissions. On the facts, the Court found that the remedy under section 61(1) was not shown to be complete and efficacious so as to justify dismissal at that stage.

Conclusion: The preliminary objection was rejected and the writ petition was entertained on merits.

Issue (ii): Whether the agreement for use of the TATA brand marks and indicia amounted to a taxable transfer of the right to use goods under the Maharashtra Sales Tax on the Transfer of Right to use any Goods for any Purpose Act, 1985.

Analysis: The Act defined "goods" broadly to include incorporeal and intangible property, and its charging scheme covered transfer of the right to use such goods. The agreement conferred a non-exclusive but real entitlement to use the business name, marketing indicia and marks, while the proprietor retained control and protective obligations. The Court held that exclusivity or unconditional transfer was not a statutory requirement. The judgment in Bharat Sanchar Nigam Limited was distinguished because it dealt with a different composite-service context and the observations there could not be transplanted into the present enactment. The earlier view that transfer of the right to use trademarks is taxable was approved.

Conclusion: The agreement was held to be a taxable transfer of the right to use trade marks and other intangible goods, and the assessment and recovery actions were upheld.

Final Conclusion: The writ petition failed in its entirety; the recovery proceedings and the Tribunal's dismissal of the appeals were left undisturbed.

Ratio Decidendi: Under the 1985 Act, a non-exclusive and conditional permission to use an intangible commercial mark can still amount to a taxable transfer of the right to use goods, and exclusivity or surrender of control is not a necessary statutory condition.

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