TATA trademark row...SC favours Tata Sons vs Maharashtra Govt

A bench headed by Chief Justice H.L. Dattu stayed the penalty after senior counsel Harish Salve told the apex court that the company had paid Rs. 300 crore sales tax to the state government over the use of TATA name by its subscribing companies.

The Supreme Court restrained the Maharashtra government from imposing penalty on Tata Sons over the use of the "TATA" name by its subscribing companies.

A bench headed by Chief Justice H.L. Dattu stayed the penalty after senior counsel Harish Salve told the apex court that the company had paid Rs. 300 crore sales tax to the state government over the use of TATA name by its subscribing companies.

The apex court also admitted the company’s appeal, seeking clarity on taxability of the transaction for the transfer of right to use the trademark assigned to its group companies.

Tata Sons’ had challenged a Bombay High Court judgment that upheld the state government’s decision to levy tax for the use of TATA name.

However, Tata Sons had argued that the trademark was assigned to its group companies which meant that there is no transfer within the meaning of the Lease Tax Act.

But, the state’s sales tax department held that the transactions were covered under the provisions of the Lease Tax Act and slapped sales tax dues of Rs. 300 crore between 1998 and 2002.