Applicability Of GST On Brand Name

Applicability of GST on Brand Name

In the Matter of: Sarvasiddhi Agrotech Pvt. Ltd. [WP(C) No. 279/2021]

Forum: High Court of Tripura

Order Delivered on: April 20, 2021

Factual Background: The petitioner is a registered company engaged in supply of Non-Basmati unbranded rice in the State of Tripura. A search was conducted at the godown (warehouse) of the petitioner which resulted in seizure of documents and stock of rice lying in godown having certain brand name. The adjudicating authority issued a show cause notice in which it alleged that petitioner was engaged in manufacturing, packaging and supply of branded rice having different product names in unit containers without payment of GST. The petitioner claimed that the stock lying in the godown was for internal (grading) purpose and not for taxable supply and was meant to be returned due to quality disputes. Demand under Section 74(9) of the Central Goods and Service Tax Act, 2017 (“CGST Act”), penalty