Brand name exemption denied for frozen seafood where packaging still linked goods to the registered brand and supplier name.

Frozen seafood supplied in unit containers by a registered brand name holder remained ineligible for nil-rate exemption under Notification No. 2/2017-Central Tax (Rate) where the company name and other inscriptions continued to link the goods to the registered brand. Removal of a visible logo did not change the goods' branded character, and the presence of the supplier's name on the containers was treated as sufficient to show that the supplies were not unbranded. The applicant also failed to show valid foreclosure of any actionable claim or enforceable right in the brand name, which was required to satisfy the exemption conditions. The supplies therefore continued to fall within the branded goods entry.

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Issues: Whether frozen seafood sold in packages to institutional customers without bearing the brand name is eligible for exemption at nil rate under Notification No. 2/2017-Central Tax (Rate).

Analysis: The applicant was a registered brand name holder and sold frozen seafood under its brand to retail customers. The ruling held that removal of the visible logo did not alter the character of the goods where the company name and other inscriptions continued to connect the goods with the registered brand and the supplier in the course of trade. The presence of the company name on unit containers, even if required by statute, was treated as sufficient to indicate that the goods were not unbranded. The ruling also noted that the applicant had not shown any valid foreclosure of actionable claim or enforceable right in the brand name as required by the relevant exemption conditions. On that basis, frozen seafood in unit containers remained covered by the branded goods entry and did not qualify for the exemption meant for unbranded supplies.

Conclusion: No. Frozen seafood supplied in packages by a registered brand name holder to institutional customers was not eligible for exemption at nil rate merely because the package did not display the brand or trade name.

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