TaxTMI 
TaxTMI 
2008 (2) TMI 829
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....der section 5A of the Act on the purchase of goods manufactured by an exempted unit in the appellant's brand name. The appellant, a registered dealer under the KGST Act and Central Sales Tax Act, 1956, is marketing products manufactured by them and also products manufactured by other industries in the brand name of the appellant. One industrial unit which is engaged in the manufacture and sale of goods to the appellant in the appellant's brand name was entitled to sales tax exemption under the notification issued by the Government as an industrial unit in the Cochin Export Processing Zone. So far as branded goods purchased and sold by the petitioner in Kerala are concerned, such goods are taxable at the hands of the appellant as th....
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....e to pay sales tax on the sale of goods manufactured in appellant's brand name and sold to them, the appellant will be liable to pay tax under section 5A(1)(c) of the Act when such goods are despatched by the appellant to any place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce. It is against this order of clarification, this appeal under section 40 of the KGST Act has been preferred. We have heard learned counsel appearing for the appellant and learned Government Pleader for the respondent. The learned counsel for the appellant has relied on the decision of the Supreme Court in Peekay Re-Rolling Mills (P) Ltd. v. Assistant Commissioner [2007] 6 VST 541; [2007] 2 KLT 704 ....
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....tue of exemption granted to the industrial unit in Cochin Export Processing Zone which manufactured the products in appellant's brand name, the manufacturer is not liable to pay any sales tax on the sales made (1)Reported as Mayilvahanam Marketing v. Additional Sales Tax Officer [2008] 12 VST 296 (Ker). by such unit to the appellant. Since the commodity is "taxable goods" as explained by the Supreme Court in Kandaswami's case [1975] 36 STC 191 above referred, it attracts tax at the hands of the purchaser under section 5A of the Act which is the same as section 7A of the Tamil Nadu General Sales Tax Act, 1959. Even though the issue is similar to the one raised by the assessee in the case decided by the Supreme Court relied on by the ....
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....tax under the said sub-section, if he produces before the assessing authority a declaration in the prescribed form from that trade-mark or brandname holder. 5(2B) Where a trade-mark or brand-name holder consumes the goods purchased by him under sub-section (2A), in the manufacture of other goods or uses or disposes of such goods in any manner otherwise than by way of sale within the State or despatches such goods to any place outside the State, otherwise than by way of intertate sale, such trade-mark or brand-name holder shall be liable to pay tax on the turnover relating to such purchase for the year irrespective of the quantum of his total turnover." When sub-section (2) of section 5 declares that the brand-name holder shall be deemed t....