Franchise manufacturing and trade mark controls did not make aerated drinks goods manufactured on behalf of brand owners.

Quality and specification requirements in a franchise arrangement did not make the manufacturer act on behalf of the trade mark owner. Where the assessee purchased concentrates and essences, manufactured aerated waters on its own account, bore independent tax status, and merely affixed the Fanta and Campa marks, the goods were not treated as manufactured for Coca-Cola Export Corporation or Pure Drinks Pvt. Ltd. The legal character of the manufacturer remained unchanged despite brand controls, and the assessee succeeded on that issue.

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Issues: Whether aerated waters sold as Fanta and Campa were manufactured for and on behalf of the trade mark owners, or were manufactured by the assessee on its own account under a franchise arrangement.

Analysis: The arrangement with the trade mark owners required observance of quality and specification standards, but such stipulations did not alter the legal character of the manufacturer or show control amounting to manufacture on behalf of the brand owner. The assessee purchased the concentrates and essences, manufactured the products on its own account, bore independent tax status, and merely affixing the trade marks Fanta and Campa did not establish that the goods were manufactured for Coca-Cola Export Corporation or Pure Drinks Pvt. Ltd.

Conclusion: The goods were not manufactured for and on behalf of the trade mark owners, and the assessee was entitled to succeed.

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