CHARKHA DETERGENTS & SOAP Vs. CCE, NEW DELHI

JUDGEMENT

(1.) THE appellants are manufacturers of detergent soap - in powder and cake form. They sell the goods under the brand name "Faristha". The issue in this appeal is whether the use of brand name made them ineligible for the exemption under Notification No.1/93 for the period 1.4.95 to 8.6.95 as held in the orders of the lower authorities. The facts of the case are that the name "Faristha" is a registered Trade mark and belonged to M/s.Charkha Soap Mills. The original registration was in 1987. On 16.8.93 the appellant was assigned the brand name for the Territory of Delhi etc. under an agreement between M/s.Charkha Soap Mills and the appellant. This agreement assigned the Trade mark without transferring the goodwill. A further agreement was signed on 29th May, 1995 between the parties transferring in the goodwill also to the appellant. The Trade mark and merchandise mark authorities issued their Certificate of Registration of the assignment vide their letter dated 14.6.1995.

(2.) THE contention of the revenue authorities is that the appellant is entitled to the benefit only from the order of the registration i.e. 9.6.95. However, learned Counsel for the appellant submits that the assignment comes into force from the date fixed between assignor and the assignee in their deal and not from the date of the order of registration or from the date of certificate of registration. As against this learned DR submits that the assignment can be taken to be valid only from the date of order of Registration as held in the impugned orders.

(3.) IT is clear from the definition of "assignment" contained in Section 2 (i) (a) of the Trade Mark and Merchandise Mark Act 1958 that assignment is to be made in writing by the parties concerned. Thus, assignment is by consenting parties. Therefore, the assignment has to be taken as effective from date stipulated in the deed between the parties. The registration only takes note of the assignment made under the deed. In respect of a registered trade mark (as in the present case) the assignment could be alongwith the goodwill or otherwise in terms of Section 37 of the Trade Mark Act. Therefore, the assignment in favour of the appellant came into force from the date of the deed of registration, 16.8.93. The contrary view taken by the revenue authorities was not correct.