2011 (12) TMI 491 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of section 2(26) of the Bombay Sales Tax Rules, 1959 regarding entitlement to drawback under rule 42H based on holding a trade mark.

Analysis:
The High Court of Bombay heard a sales tax application related to the assessment year 1991-92, where the Sales Tax Tribunal had refused to make a reference to the court. The core issue revolved around the interpretation of section 2(26) of the Act in conjunction with the Explanation, specifically concerning the term "holding a trade mark." The Tribunal's stance was that this phrase should be limited to "holding a registered trade mark." However, the applicant's mark was registered in 1996 with retroactive effect from 1988. The court disagreed with the Tribunal's narrow interpretation and found that the application raised a significant legal question deserving the court's attention. Consequently, the court directed the Tribunal to refer the question for consideration: "Whether on a proper interpretation of section 2(26) read with the Explanation thereto, the Tribunal was justified in holding that the phrase 'trade mark' refers to a 'registered trade mark' and not to an 'unregistered trade mark'?" This decision marked the disposal of the sales tax application in favor of the applicant.