Branded restaurant food under a registered trade mark was taxable as goods, with the VAT assessment upheld.

Food served by a restaurant under a registered trade mark was treated as branded goods under the Tamil Nadu VAT Act because the mark identified the source of the food and the dishes were exclusively prepared and supplied by that restaurant. Registration for services of providing food and drink did not change the character of the food sold under the same name. The supply of food in the course of service was also treated as a sale under Section 2(33)(vi), so the levy under Section 7(1)(a) applied. The assessment to tax at 14.5% was therefore upheld.

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Issues: Whether food items served by a restaurant operating under a registered trade mark were liable to be treated as branded goods and taxed at 14.5% under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The restaurant had trade mark registration, and the statutory definition of "branded" under Section 2(9) of the Tamil Nadu Value Added Tax Act, 2006 covered goods sold under a registered trade mark. The Court held that registration for services of providing food and drink did not alter the character of the food prepared and served under the same name, because customers identified the restaurant by that mark and received food exclusively prepared by it. The Court further held that the supply of food in the course of service was treated as a sale under Section 2(33)(vi) of the Act, and the levy under Section 7(1)(a) applied as the food was branded.

Conclusion: The food items were correctly treated as branded goods, and the assessment to tax at 14.5% was upheld.

Ratio Decidendi: Where restaurant food is supplied under a registered trade mark that identifies the source of the goods, the food falls within the statutory definition of branded goods and is liable to tax accordingly, including where the supply is made as part of service and deemed to be a sale under the VAT law.

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