Whirlpool Of India Ltd.. Bangalore vs The Deputy Commissioner Of Commercial ...

The Supreme Court ruled that under Section 5(3)(a) of the Karnataka Sales Tax Act, 1957, the appellant, a registered dealer, is not liable for sales tax on goods manufactured by Applicomp India Limited, as the latter is exempted from tax under a government notification. The Court clarified that the agreement between the appellant and Applicomp allows the latter to affix the trademark 'Whirlpool' but does not grant it any ownership rights. The appeal against the Karnataka High Court's dismissal was thus upheld, confirming the tax exemption for sales made by Applicomp to the appellant.