ITC Limited vs. Tapisserie Lifestyle Private Limited & Anr.
Facts
The Plaintiff, ITC Limited, filed a suit seeking permanent injunction against Defendant No.1, Tapisserie Lifestyle Private Limited, and Defendant No.2 for infringement of its trademark and copyright. An order dated April 19, 2022, directed the Defendants to destroy the impugned goods. Defendant No.1 filed an application seeking clarification of this order, specifically regarding the refund of Goods and Services Tax (GST) and excise duty on the destroyed goods. Defendant No.1 argued that destruction of cigarettes, the impugned goods, would entitle them to a tax refund, but this process might be complicated if not conducted in the presence of excise inspectors. The Court was asked to clarify the procedure for destruction and subsequent refund.
Held
The Court held that if the Defendants are entitled to a refund of GST and excise duty in respect of the goods to be destroyed, they are permitted to approach the concerned authorities. To facilitate this, if the destruction is to be carried out in the presence of excise inspectors, such inspectors shall be deputed to the premises of Defendant Nos. 1 and 2 to ensure the destruction takes place in their presence. Following the destruction, the Defendants are permitted to seek the GST and excise refunds. The Plaintiff's representatives are also permitted to be present during the destruction process. The Court clarified that the present order is to be read along with the order dated April 19, 2022, and will be uploaded as a corrigendum.
Key Issues
1. Whether the Defendants are entitled to a refund of GST and excise duty on the destruction of the impugned goods (cigarettes) as per applicable laws? Contentions: Petitioner/Appellant (Defendant No.1): Argued that upon destruction of the impugned goods, specifically cigarettes, they would be entitled to a refund or adjustment of GST and excise duty under applicable laws. They further contended that the destruction process would be facilitated for refund purposes if conducted in the presence of excise inspectors. They relied on the previous order dated April 19, 2022, which mentioned entitlement to tax refund upon destruction. Revenue/State: No specific arguments were recorded for the Revenue/State in this judgment.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2022
This hearing has been done through hybrid mode. I.A. 8067/2022
The present suit has been filed by the Plaintiff seeking permanent injunction against the Defendant restraining infringement of Plaintiff’s rights in its registered trademark, copyright etc.
This is an application seeking clarification of the order dated 19th April, 2022. Paragraph 12 of the said order reads as under:
“12. At this stage, ld. counsel for Defendant No.1 points out that upon destruction of cigarettes, considering the tax payable on these products if they are destroyed, Defendants would be entitled to some tax refund. If that is
The judgment continues below.
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