Branding of goods—The question before authority in this case is that
Whether mention of name of the Appellant on the goods, as required by FSSAI regulations and Legal Metrology Rules, amounts to brand name or not?
Whether use of general words like ‘Choice’, ‘Value’ or ‘Superior’ on the goods to be sold in ‘More stores would render the said goods as branded or not? - N/N. 02/2017-Central Tax (Rate) dated 28 June 2017.

Held that—There is no bar on the name of the manufacturer to be a brand name as long as it is used in relation to such specified goods for the purpose of indicating a connection in the course of trade between such specified goods and the person using such name. So, the real test here is the connection between the specified goods on which such a name is being used and the person using such name in the course of trade.
In the instant case, the goods in question are being sold under the brand ‘More’ in exclusive ‘More Stores’ and also bearing the registered logo of ‘Aditya Birla Retail’. Therefore, there are two brand names attached to the said goods at present. Alternatively, the consumers identify these goods by ‘More’ brands and also as those manufactured by Aditya Birla Group company - There is one more logo on the goods which bears ‘Aditya Birla Retail’, the registered trade mark of the Group company, used by the Appellant under licence agreement. Thus the goods are being identified by consumers/customers by names ‘More’ and ‘Aditya Birla Retail’. As confirmed by the Appellant, huge investment and time is involved in establishing the brands by way of consistent advertising and marketing to register in the minds of consumers/customers. There is accordingly a lot of value attached to such brands which hire some part of Customer’s mind to differentiate the goods from rival manufacturers/brands.
Merely mention of manufacturer’s name on the product as required under different statutes may not necessarily result in consideration of that product as branded. But if the name of manufacturer mentioned on the product, even as per statutory requirements, clearly establishes a link with the manufacturer and the product, then it surely amounts to be a brand name, as brand name includes any name as per explanation provided under the exemption notification. Though there is no laid down criterion in this regard, but the surrounding environment needs to be scrutinized as to whether the name of manufacturer on the product can result in consideration of brand or not - in the instant case that the answer is in affirmative.
It is clear that even by removing their brand names ‘More’ and ‘Aditya Birla Retail’ from packaging of the said goods, the Appellant still enjoys the advantage attached to the said two brand names and thus the benefit of exemption cannot be extended to them. The mention of name ‘Aditya Birla Retail Limited’ on the packages, as manufacturer of the said goods clearly indicates the connection between the said goods and Aditya Birla Group in the course of trade as they are already having a registered brand in the name of ‘Aditya Birla Retail’ which was being displayed on the said goods till now - there is direct connection between the said goods and the brand ‘More’ and the manufacturer Aditya Birla Retail Ltd., thus the use of name of manufacturer on packages can be considered as brand name.

Merely by removing their registered brand name logos viz. ‘MORE’ and ‘Aditya Birla Retail’ from the packaging of some of their products and keeping the surrounding environment intact to take advantage of the said brands not render such goods unbranded and the benefits of exemption notification from GST would not be available to such goods - Also, the use of words like ‘ CHOICE’, ‘VALUE’ or ‘SUPERIOR’ on the proposed packing, which are already in use with the brand ‘More’ on the present packing, would amount to branding of goods as the goods can be identified with the brand ‘More’ by the use of these words.

Ruling—The use or words ‘VALUE’, ‘CHOICE’ or ‘ SUPERIOR’ on the proposed packing, without altering the surrounding environment to take advantage of brand ‘MORE’, would be construed as ‘brand name’ for the purpose of Exemption Notification.[APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA]-[2018] 2 TAXLOK.COM 036 (AAR-Maharashtra)