1992 (8) TMI 250 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of tax assessment on pickles sold under a brand name registered under the Trade and Merchandise Marks Act, 1958.
2. Determining whether pickles sold in bottles and packets should be taxed under single-point or multi-point taxation.
3. Validity of tax assessment for pickles sold under a brand name "RAVIS" and those sold without a brand name.

Analysis:
The petitioner, a dealer in pickles, was assessed for the assessment year 1981-82 with total and taxable turnover amounts. The petitioner applied for registration under the Trade and Merchandise Marks Act, 1958, for pickles packed in bottles and packets, receiving registration on November 30, 1981. The dispute arose when the assessing officer sought to tax the petitioner under single-point taxation, leading to appeals to higher authorities.

The petitioner argued that single-point taxation was unwarranted, especially given the registration date and the sale of pickles without a brand name. The government pleader contended that registration under the Act is effective from the date of application, justifying the assessment from January 6, 1979. The assessing officer opted for single-point taxation from November 30, 1981, based on the nature of transactions during the assessment year.

The key issue was whether pickles sold under the brand name "RAVIS" should be taxed under single or multi-point taxation. The relevant entry in the First Schedule specified conditions for taxation, including sale under a registered brand name. The Court found that pickles sold under the "RAVIS" brand were rightly taxed under single-point levy from November 30, 1981. However, pickles sold in packets without the brand name should not fall under single-point taxation.

The Court partially allowed the petition, affirming the Tribunal's decision on bottled pickles but setting aside the taxation on pickles sold in packets. The assessing officer was directed to reassess the turnover of pickles sold in packets in line with the judgment. The decision was made based on the entry in the First Schedule as of October 10, 1979.

In conclusion, the Court's judgment clarified the tax assessment on pickles sold under a registered brand name, distinguishing between single and multi-point taxation based on the presence of the brand name. The reassessment for pickles sold in packets was ordered, ensuring compliance with the law and the specific provisions of the First Schedule.