Trademark-based repacking and resale of lubricating oil constitutes a deemed first sale, even without trademark registration.

Sale of lubricating oil purchased in bulk, repacked into smaller containers, and marketed under the dealer's distinct "Vicrocil" brand was treated as a deemed first sale under Section 5AA. The provision applies where a dealer holding a trademark sells goods otherwise than at the first point of sale, and "trademark" includes both registered and unregistered marks. Registration is therefore unnecessary where the dealer adopts and uses a distinctive trade name in marketing the goods. Tax paid at the prior purchase point remains deductible when computing liability. The sales were consequently taxable as deemed first sales, with the issue resolved against the assessee.

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Issues: Whether sale of lubricating oil purchased in bulk, repacked into smaller containers and marketed under the dealer's own brand name amounts to sale by a trademark holder taxable as a deemed first sale under Section 5AA.

Analysis: Section 5AA deems a dealer holding a trademark who sells goods otherwise than at the first point of sale to be the first seller in the State. The assessee purchased lubricating oil from registered dealers, repacked it in smaller quantities, and marketed it under the distinct brand name and trademark "Vicrocil". The statutory expression "trademark" covers both registered and unregistered trademarks; registration is not a prerequisite where the dealer adopts and uses a distinctive trade name while marketing the goods. Tax paid at the preceding purchase point remains deductible in determining the liability.

Conclusion: The sales were taxable under Section 5AA as deemed first sales; the substantial question was answered against the assessee and in favour of the Revenue.

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