Tag: #MinistryofFinance

  • Madras High Court Clarifies Test for Descriptive and Composite Trademarks

    Madras High Court Clarifies Test for Descriptive and Composite Trademarks

    Date: 05.11.2026

    The Madras High Court has set aside the Trade Marks Registry’s refusal to register β€œGIRL POWER PROJECT” in Class 41, holding that the mark must be assessed as a whole and is capable of distinguishing the applicant’s services.

    The decision, delivered on 19 July 2024 by Justice P.B. Balaji, reinforces an important trademark principle: a composite word mark cannot be refused simply by separating its individual words and treating them as descriptive. The Court directed the Registry to resume processing the application within three months.

    Background of the dispute

    Just Lime My Child Foundation, a non-profit organisation working to improve healthcare, personal care, education and micro-enterprise opportunities for women and girls, applied to register the word mark β€œGIRL POWER PROJECT” in Class 41.

    The Foundation stated that it had operated the initiative under this name since 2014. Its programme focuses on supporting girls through the challenges of adolescence and helping them avoid outcomes such as early marriage, early pregnancy and disease, while promoting education and economic independence. The organisation also began operating the project in India in 2020.

    Despite this background, the Trade Marks Registry rejected the application on 8 February 2024 under Section 9(1)(b) of the Trade Marks Act, 1999. The Registry considered the phrase descriptive of girl empowerment and therefore not eligible for registration.

    The Foundation’s case

    The appellant argued that the Registry had wrongly broken the mark into separate descriptive elements instead of considering the expression β€œGIRL POWER PROJECT” as one composite mark. It also pointed out that the same mark had already been registered in the United States and Uganda.

    The Foundation relied on decisions recognising that the registrability of a word combination depends on the overall impression created by the complete mark, not merely on whether individual words may have descriptive meanings. It submitted that the phrase was not confined to describing girl empowerment services and was distinctive of its broader charitable activities.

    Why the Court disagreed with the Registry

    The Court found that the refusal order did not explain adequately why the complete mark was barred by Section 9(1)(b). Its reasoning identified several flaws:

    • The mark was improperly dissected. The Registry examined the expression in parts rather than evaluating β€œGIRL POWER PROJECT” as a composite whole.
    • The refusal lacked supporting analysis. Although the Registry called the mark descriptive or common to trade, it did not provide a meaningful discussion supporting that conclusion.
    • Relevant overseas registrations were not considered. The Court noted that registrations in the United States and Uganda had been brought to the Registry’s attention but were not addressed.
    • The mark could distinguish the Foundation’s services. The Court held that the organisation’s objectives and activities were broader than the particular Class 41 services cited by the Registry. The mark was therefore capable of distinguishing its services from those of other entities.

    The Court referred approvingly to the principle that even where individual terms may have descriptive connotations, their combination may still be distinctive if the expression as a whole differs from the ordinary way in which consumers describe the relevant goods or services.

    Distinguishing the Registry’s cited precedent

    The Registry relied on a Delhi High Court decision concerning the mark β€œSWISS MILITARY.” The Madras High Court found that decision inapplicable.

    That earlier case involved an opposition and concerns over a mark suggesting a geographical origin that could mislead the public. By contrast, the β€œGIRL POWER PROJECT” dispute concerned a refusal based on alleged descriptiveness. The Court held that the factual and legal context of the β€œSWISS MILITARY” decision did not support the Registry’s position.

    Outcome and significance

    The High Court allowed the appeal, set aside the Registry’s refusal, and directed the Registrar of Trade Marks to process the application in accordance with law within three months of receiving the order. No costs were awarded.

    The ruling is significant for trademark applicants using multi-word marks with suggestive or descriptive elements. It confirms that the legal test is not whether isolated words have ordinary meanings, but whether the mark, viewed in its entirety, can identify and distinguish the applicant’s services. A refusal under Section 9(1)(b) must also be supported by clear reasoning tied to the complete mark and the services for which protection is sought.

    For β€œGIRL POWER PROJECT,” the Court concluded that the expression was distinctive enough to proceed through the registration process rather than being rejected at the threshold.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Gujarat High Court Grants Regular Bail in NDPS Case After Charge-Sheet Filing

    Gujarat High Court Grants Regular Bail in NDPS Case After Charge-Sheet Filing

    Date: 05.11.2026

    The Gujarat High Court has granted regular bail to Meman Mahmadfejan Usmangani in an NDPS case, stressing that prolonged custody after completion of investigation should not become a form of pre-trial punishment.

    Case at a glance

    On 4 November 2026, Justice Hasmukh D. Suthar of the Gujarat High Court at Ahmedabad allowed a successive regular-bail application filed after submission of the charge-sheet. The case arises from FIR No. 11217014260400 of 2026 at Kakoshi Police Station, Patan, alleging offences under Sections 8(c), 21(c) and 29 of the Narcotic Drugs and Psychotropic Substances Act.

    The applicant had been in custody since 11 July 2026. The Court ordered his release on a personal bond of Rs. 25,000 with one surety for the same amount, subject to specified conditions.

    Allegations in the case

    According to the order, the prosecution alleged that a co-accused possessed and sold narcotic cough syrup and pregabalin capsules without a drug licence, supporting documents, or a doctor’s prescription. The seized material included:

    • 94 bottles of Corex cough syrup, each containing 100 ml of codeine phosphate, valued at Rs. 16,743.28;
    • 15 strips of pregabalin capsules, each strip containing 10 capsules, valued at Rs. 4,176.

    The allegation against the applicant was that he had supplied the contraband to the co-accused. The co-accused, from whose conscious possession the material was allegedly recovered, had already been released on bail.

    Why the Court granted bail

    The Court considered several circumstances in favour of the applicant:

    • Investigation was complete: The police had filed the charge-sheet, reducing the need for custodial interrogation.
    • No further recovery was required: The Court noted that there was nothing left to recover or discover from the applicant.
    • No criminal antecedents: The applicant had no prior criminal record noted in the order.
    • Parity with the co-accused: The co-accused from whom the alleged contraband was recovered had been granted bail.
    • Trial may take time: The Court observed that commencement and completion of the trial would take time.
    • No demonstrated need for continued detention: The prosecution had not shown circumstances justifying further incarceration.

    The Court referred to established bail principles, including the Supreme Court decisions in Sanjay Chandra v. Central Bureau of Investigation and Gudikanti Narasimhulu v. Public Prosecutor, High Court of Andhra Pradesh. It reiterated that β€œbail is a rule and jail is exception,” linking the principle to the constitutional protection of personal liberty under Article 21.

    Bail conditions

    The applicant must comply with conditions designed to ensure his availability for trial and prevent interference with the case. These include:

    1. Not misusing the liberty granted by the Court.
    2. Not acting against the prosecution’s interests or tampering with evidence.
    3. Surrendering any passport to the trial court within one week.
    4. Not leaving Gujarat without prior permission from the trial court.
    5. Reporting to the relevant police station once each month for six months, between 11:00 a.m. and 2:00 p.m.
    6. Providing Aadhaar details, email address and current residential address to the investigating officer and the court, and not changing residence or contact number without prior permission.
    7. Not engaging in any illegal activity.

    The order also states that breach of these conditions may lead to a warrant or cancellation of bail. Release remains subject to the applicant not being required in any other offence.

    Significance of the order

    The ruling illustrates the Court’s approach to regular bail after a charge-sheet has been filed. While the allegations involve narcotic substances, the Court balanced the seriousness of the case against factors such as completed investigation, absence of prior antecedents, lack of need for further recovery, bail granted to the co-accused, and the likely duration of trial.

    Importantly, the Court clarified that its preliminary observations for deciding bail must not influence the trial court’s assessment of evidence during the criminal trial. The grant of bail is therefore not a finding on guilt or innocence; it is a conditional release while the case proceeds.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Handy Download:

    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • CESTAT Ahmedabad Quashes Gold Confiscation After GST Records Support Lawful Domestic Purchase

    CESTAT Ahmedabad Quashes Gold Confiscation After GST Records Support Lawful Domestic Purchase

    Date: 05.11.2026

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad has allowed the appeals of V. Navinchandra Hirachand Malji Jewellers & Co. and its authorised signatory, ruling that Customs could not sustain confiscation of two foreign-marked gold bars after the appellants produced GST invoices, stock records and a documented domestic transit trail that the Department did not properly investigate.

    The dispute: 200 grams of foreign-marked gold seized in domestic transit

    The case concerned two gold bars weighing 200 grams, marked β€œARGOR-HERAEUS, SA” and assessed at 999 purity. The bars were valued at Rs. 12.10 lakh and were being transported within India through an angadia carrier when DRI officers intercepted the parcels outside Kalupur Railway Station, Ahmedabad, on 7 June 2023.

    Customs treated the bars as smuggled because of their foreign refinery markings and the absence of import documents accompanying the shipment. The goods were subsequently seized, absolutely confiscated under the Customs Act, 1962, and penalties were imposed on both the jewellery firm and its authorised signatory.

    The adjudication order imposed separate penalties of Rs. 1.50 lakh under Section 112(b) and Rs. 25,000 under Section 117 on each appellant. The Commissioner (Appeals) upheld the confiscation and penalties, prompting the appellants to approach CESTAT.

    The jeweller’s case: domestic purchases were recorded and supported

    The appellants did not dispute that the gold bars were foreign-origin products. Their central case was that foreign manufacture does not, by itself, establish illegal importation.

    They relied on:

    • GST purchase invoices from Surat-based suppliers, including N.R. Jewellers and Vidhi Jewellers;
    • their trading stock ledger;
    • entries showing an opening gold stock of 400 grams and subsequent purchases of 450 grams and 80.6 grams from the stated suppliers; and
    • documentation supplied to the angadia carrier for the domestic consignment.

    According to the appellants, the 200 grams were sent to Pahini Jewellers Ltd., Ahmedabad, toward settlement of outstanding dues arising from earlier jewellery purchases. They argued that once they furnished domestic purchase records, the Department had to verify the suppliers and disprove the claimed lawful supply chain.

    Customs’ position: local invoices could not replace import documents

    The Department argued that Section 123 of the Customs Act places the burden on the possessor or claimant of seized gold to prove that it is not smuggled. It submitted that GST invoices and stock ledgers were insufficient because they did not trace the specific bars to lawful import documents, such as Bills of Entry or customs-clearance records.

    Revenue also relied on the authorised signatory’s statement that the business had not obtained import documents from suppliers and that gold sold in retail could possibly have entered through Mumbai or Surat airports. It contended that the foreign refinery marks, 999 purity and lack of import documentation justified the reasonable belief that the goods were smuggled.

    Tribunal’s finding: the evidentiary burden shifted after credible domestic records were produced

    CESTAT held that the Department’s case failed because the appellants had produced invoices through the GST system, stock records and documentation consistent with the stated purity of the seized gold. There was no allegation that the suppliers had not actually supplied the goods or that the GST invoices were fabricated.

    The Tribunal also gave weight to the angadia partner’s statement. The carrier confirmed that it had received delivery challans and invoices relating to the consignment and that it routinely transported valuable goods on the basis of customer-supplied documentation.

    On these facts, the Tribunal concluded that the initial burden under Section 123 had been met sufficiently to require the Department to investigate further. Customs should have verified the suppliers, examined whether their records were genuine and determined whether the supply chain was tainted. It did not do so.

    The Tribunal emphasized that where a GST-recorded invoice, matching purity details and accounting entries exist at both the supplier and purchaser levels, foreign markings alone cannot displace the documentary evidence. It also noted that lawful channels for foreign gold bullion exist, including authorised channels such as banks and GIFT City-related arrangements.

    Why the seizure was set aside

    The decisive issue was not whether the bars were foreign-made, but whether the evidence established that they were smuggled. CESTAT found that Customs had not investigated the upstream supply chain despite having supplier details and contemporaneous invoices.

    The Tribunal observed that if the gold were offending goods in the appellants’ hands, the same concern would extend to the suppliers in the chain. Yet the Department neither investigated all relevant parties nor issued them show-cause notices. In the face of unchallenged documentary records, the Department could not maintain that it had a sustainable reasonable belief that the gold was smuggled.

    Outcome and legal significance

    CESTAT Ahmedabad vacated the seizure, set aside the confiscation and granted consequential relief to the appellants. The appeals were allowed by Final Order Nos. 10810-10811/2026, pronounced on 4 November 2026.

    The ruling reinforces an important principle in inland gold-seizure cases: foreign refinery markings and high purity may trigger scrutiny, but they do not conclusively prove smuggling where the claimant produces credible, GST-backed domestic purchase and stock documentation. Once such records establish a plausible and documented supply chain, Customs must conduct a meaningful supplier-side verification rather than reject the records solely because direct import documents are unavailable.

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    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Handy Download:

    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Delhi High Court Rejects Bare Refusal of Slogan Trademark Application

    Delhi High Court Rejects Bare Refusal of Slogan Trademark Application

    Date: 04.11.2026

    The Delhi High Court held that the slogan β€œWHAT DO YOU SEE?” could function as a trademark and set aside its refusal because the Trade Marks Registry gave no adequate reasons to treat it as non-distinctive or descriptive.

    Background of the dispute

    A Dot Limited applied to register β€œWHAT DO YOU SEE?” as a trademark for goods and services in Classes 16, 25, 26, 41 and 45. These classes broadly cover items such as printed matter, clothing, lace and embroidery-related goods, education and entertainment services, and certain personal or legal services.

    The Trade Marks Registry refused the application in December 2018. Its stated basis was Section 9 of the Trade Marks Act, 1999, which bars registration of marks that are:

    • devoid of distinctive character; or
    • exclusively descriptive of the kind, quality, purpose, or other characteristics of the relevant goods or services.

    Although the refusal order also referred to Section 11, which concerns conflict with earlier trademarks, the accompanying grounds did not explain any such objection or identify conflicting marks. The Court therefore confined its review to the Section 9 objections.

    Why the Court disagreed with the refusal

    The Court found that the Registry had not provided a reasoned basis for concluding that β€œWHAT DO YOU SEE?” lacked distinctiveness or described the applicant’s goods and services.

    The phrase is made up of ordinary English words, but that alone does not make it unregistrable. The Court treated it as a tagline or slogan capable of operating as a source identifier, provided it does not directly describe the relevant products or services.

    In ordinary use, β€œWhat do you see?” is a question inviting a person’s perception, interpretation, opinion, or observation. It does not describe the time, quality, quantity, intended purpose, or another characteristic of the goods and services covered by A Dot Limited’s application. As a result, the phrase was not inherently descriptive in the way Section 9(1)(b) requires.

    The Court also noted its earlier view that slogans and taglines should be assessed like word marks when a trademark application is examined.

    Additional factors considered

    The decision records that A Dot Limited had obtained registrations for the identical mark in jurisdictions including the United States, the United Kingdom, and Israel. It also noted that an Indian device mark containing the same phrase as a tagline had already been registered.

    These facts did not replace the statutory analysis under Indian law, but they supported the conclusion that the phrase was capable of functioning as a trademark.

    The Court’s directions

    The High Court allowed the appeal and issued the following directions:

    1. Set aside the refusal order and statement of grounds.
    2. Direct the Trade Marks Registry to process the application.
    3. Require advertisement of the mark within three months.
    4. Preserve the right of third parties to oppose, with any opposition to be decided independently on its merits.
    5. Limit protection to the complete phrase β€œWHAT DO YOU SEE?” used as a combination of words.
    6. Deny exclusive rights in the individual words β€œWHAT,” β€œDO,” β€œYOU,” or β€œSEE?” separately. This limitation must be reflected in the Trade Marks Journal if the application proceeds to registration.

    Key legal takeaway for trademark applicants

    This ruling reinforces that a slogan cannot be rejected merely because it consists of dictionary words. The relevant question is whether, in relation to the specified goods and services, the phrase directly describes their characteristics or is incapable of distinguishing one trader’s offerings from another’s.

    For brand owners, the decision is particularly useful where a proposed mark is a short tagline, question, or expressive phrase. A clear explanation of how the phrase functions as a badge of commercial origin, coupled with evidence of use or registration where available, can help address objections based on lack of distinctiveness or descriptiveness.

    At the same time, the case illustrates an important limitation: registration of a phrase may protect only the phrase as a whole, not the ordinary words within it.

    The outcome preserves room for others to use common words fairly and independently while allowing the combined expression to proceed through the trademark-registration process.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Handy Download:

    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Delhi HC Says Right to Speedy Trial Can Prevail Over Section 37 NDPS Rigours

    Delhi HC Says Right to Speedy Trial Can Prevail Over Section 37 NDPS Rigours

    Date: 04.11.2026

    The Delhi High Court has granted regular bail to an accused in a commercial-quantity narcotics case, holding that the prolonged delay in trial and the absence of any delay attributable to the accused justified relief despite the stringent bail conditions under the NDPS Act.

    Case background

    In Harikrishnan PS v. Narcotics Control Bureau, decided on 2 November 2026, the accused sought regular bail in a case registered under Sections 8(c), 21(c), and 29 of the Narcotic Drugs and Psychotropic Substances Act, 1985. These provisions concern possession, dealing, and conspiracy relating to narcotic drugs and psychotropic substances.

    According to the prosecution, authorities intercepted a DTDC parcel bearing the accused’s name and particulars. The parcel allegedly contained 480 grams of charas and 60 grams of methamphetamine. The prosecution further alleged that, after the accused was apprehended from a guesthouse, an additional 140 grams of methamphetamine was recovered at his instance.

    Because the alleged recovery involved commercial quantity, the restrictive β€œtwin conditions” for bail under Section 37 of the NDPS Act ordinarily applied.

    Why the Court granted bail

    The central issue was not the alleged quantity of contraband, but the continued incarceration of the accused amid a trial that had made limited progress.

    The accused had been in custody since 7 December 2021. Of the 26 prosecution witnesses listed, only eight had been examined by the time the bail application was considered. Further delay was expected because co-accused Nafi had been arrested later, requiring the witnesses already examined to be recalled.

    Importantly, the Narcotics Control Bureau fairly accepted before the Court that the delay in trial could not be attributed to the accused. The Court also noted that another co-accused, Paschal, had already been granted bail on 12 August 2026 on the ground of trial delay.

    Expeditious trial and Section 37 of the NDPS Act

    Section 37 makes bail in commercial-quantity NDPS cases particularly difficult. Generally, a court must be satisfied that there are reasonable grounds to believe the accused is not guilty and is unlikely to commit an offence while on bail.

    However, the High Court reaffirmed that the constitutional requirement of an expeditious trial can affect the application of these strict conditions. Where an accused remains in custody for a substantial period, the trial is moving slowly, and the accused is not responsible for the delay, continued detention may become unjustified.

    The Court found that the trial was not likely to conclude within a reasonable time. In those circumstances, it held that there was no reason to deprive the accused of liberty any further.

    Bail conditions

    The Court allowed the bail application and directed the release of the accused on furnishing:

    • a personal bond of Rs.50,000; and
    • one surety of the same amount,

    subject to the satisfaction of the Trial Court or Duty Magistrate.

    The order was also directed to be promptly sent to the concerned Jail Superintendent so that the accused could be informed.

    Key legal significance

    This ruling highlights an important safeguard in NDPS prosecutions: stringent statutory bail restrictions do not eliminate the accused’s right to a timely trial. Even in cases involving alleged commercial quantities, courts may grant bail where detention becomes prolonged, the prosecution has examined only a small portion of its witnesses, and the accused has not caused the delay.

    The decision reinforces that criminal trials must proceed with reasonable speed, particularly where a person’s liberty has been restricted for years without a foreseeable conclusion to the case.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Handy Download:

    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • CESTAT Allahabad Holds Customs Refund Claim Not Time-Barred Where Amount Was Security

    CESTAT Allahabad Holds Customs Refund Claim Not Time-Barred Where Amount Was Security

    Date: 04.11.2026

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad, has held that Rs. 30 lakh deposited by Tin Manufacturing Company of India under directions of the Allahabad High Court was a court-directed deposit, not customs duty, and therefore the one-year refund limitation under Section 27 of the Customs Act, 1962 did not apply.

    Background of the dispute

    The dispute dates back to 1987, when M/s Tin Manufacturing Company of India imported tin sheets at Mumbai. Customs alleged that the goods had been misdeclared, after which they were transferred to the Central Warehousing Corporation’s public bonded warehouse at Mohan Nagar, Ghaziabad.

    The then Collector of Customs, Bombay decided the matter in the company’s favour in October 1989. When the company later sought clearance of the warehoused goods, Customs required it to file an ex-bond bill of entry. The company challenged this requirement before the Allahabad High Court.

    During the writ proceedings, the High Court directed the company to deposit Rs. 30 lakh in cash and furnish a bank guarantee of Rs. 13.15 lakh to secure release of the goods. The company complied and obtained release.

    The writ petition was later dismissed for want of prosecution in 2009. Subsequent recall applications were unsuccessful. However, in February 2018, the High Court clarified that, if entitled to a customs refund, the company could pursue the appropriate legal remedy.

    Why the refund claim was rejected earlier

    The company filed a refund claim for Rs. 18,91,396. The Customs department rejected it, initially in 2019 and again after remand in 2022. The Commissioner (Appeals) upheld the rejection on two principal grounds:

    • The claimant had not produced documents considered sufficient under Section 27(1A) of the Customs Act.
    • The claim had been filed almost 20 years after the amount was paid, far beyond the one-year limitation applicable to refunds of customs duty.

    The appellate authority treated the Rs. 30 lakh payment and the Rs. 13.15 lakh bank guarantee as part of a customs-duty liability said to be Rs. 43.15 lakh.

    Tribunal’s key finding: the amount was a deposit, not duty

    CESTAT disagreed with that approach. It found that no proper customs assessment had been made when the cash deposit and bank guarantee were furnished. Both were provided solely because the High Court had required security for release of the goods.

    The Tribunal placed particular weight on the nature of the bank guarantee. Customs duty is not paid through a bank guarantee; its presence showed that the amounts were security deposits toward a possible future liability rather than assessed customs duty.

    Accordingly, the Tribunal held that the payment could not be treated as customs duty merely because Customs later sought to characterize it that way. Since the claim concerned recovery of a court-directed deposit rather than a refund of assessed duty, the limitation and evidentiary requirements relied upon under Section 27(1A) did not govern the case.

    Legal principles applied by CESTAT

    The Tribunal relied on the principle that an amount paid without a legally determined tax liability does not automatically acquire the character of tax or duty. It referred to decisions including Commissioner of Central Excise, Bangalore v. KVR Construction and the ruling upheld in Credible Engineering v. Commissioner of Customs and Central Excise.

    Those decisions recognize that statutory refund limitation provisions do not bar repayment where the amount was paid under a mistake of law or was not legally payable as tax in the first place. The underlying rationale is that the government cannot retain money when it had no authority to treat it as a legally due tax or duty.

    Final order and implications

    CESTAT set aside the order rejecting the refund. It held that Tin Manufacturing Company of India is entitled to the refund, together with applicable interest calculated from the date of the High Court-directed deposit until the date the refund is made.

    The ruling is significant for customs disputes involving deposits, pre-deposits, securities, or payments made under court directions. It reinforces that the substance of a payment matters more than its label: where there is no final assessment or established duty liability, a court-directed payment may remain a refundable deposit rather than customs duty subject to the standard statutory refund deadline.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Handy Download:

    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Delhi HC: Trademark Registry Cannot Reject Marks Based on Imaginary or Conjectural Descriptiveness

    Delhi HC: Trademark Registry Cannot Reject Marks Based on Imaginary or Conjectural Descriptiveness

    Date: 03.11.2026

    The Delhi High Court has set aside the Trade Marks Registry’s refusal to register β€œDOUBLE-CHOICE” for rice, flour and cereal preparations, holding that the mark must be assessed as a whole and that a proposed-to-be-used application cannot be rejected for lacking acquired distinctiveness through use.

    Background of the dispute

    Kapil Goyal applied on 20 June 2023 to register β€œDOUBLE-CHOICE” in Class 30 for rice, flour and preparations made from cereals. The application was filed on a proposed-to-be-used basis, meaning the mark had not yet been used in the marketplace.

    The Trade Marks Registry objected under Sections 9(1)(a) and 9(1)(b) of the Trade Marks Act, 1999. It concluded that the mark lacked distinctiveness, was composed of non-distinctive words, and was descriptive of the kind and intended purpose of the relevant goods. The Registry also found that the mark had not acquired secondary meaning because it had not been used in the market.

    Following a hearing, the application was refused on 24 January 2025. Kapil Goyal appealed to the Delhi High Court under Section 91 of the Act.

    Key issues before the Court

    The dispute centred on three connected questions:

    • Whether β€œDOUBLE-CHOICE” was inherently incapable of distinguishing one trader’s goods from those of another.
    • Whether the expression directly described rice, flour or cereal preparations.
    • Whether the absence of prior market use could justify refusal of an application filed on a proposed-to-be-used basis.

    The Court’s findings

    A composite trademark cannot be broken into isolated words

    The Court held that a trademark must be evaluated in its entirety. Although β€œDOUBLE” and β€œCHOICE” are individually common English words, their combination had to be assessed as the composite expression β€œDOUBLE-CHOICE”.

    On that basis, the Court found that the expression was not so common or devoid of distinction that it could not identify the commercial source of the applicant’s goods. The Registry had not identified any identical or similar marks, nor had it explained why use of β€œDOUBLE-CHOICE” would make it impossible for consumers to distinguish the applicant’s goods from those of other traders.

    The mark was not shown to be descriptive

    The Registry had reasoned that β€œDOUBLE-CHOICE” referred to a situation involving two options and therefore described a variety or consumer choice connected with the products. The Court rejected that reasoning as unsupported by evidence.

    It noted that the refusal order did not clarify which products consumers would supposedly be choosing between. There was no factual material showing that the mark denoted product variety, two alternatives, or any feature of the rice and cereal goods. The Court characterized this conclusion as conjectural rather than evidence-based.

    A mark is not descriptive merely because its words have dictionary meanings. To attract the statutory bar, the expression must directly indicate a characteristic, quality, kind, purpose or other attribute of the specific goods. The Court found no such direct connection between β€œDOUBLE-CHOICE” and rice, flour or cereal preparations.

    Non-use is irrelevant for a proposed-to-be-used application

    The Court also held that the Registry’s reliance on non-use and lack of secondary meaning was legally misplaced. Where an application is expressly filed on a proposed-to-be-used basis, the applicant cannot be expected to show that the mark has acquired distinctiveness through actual market use.

    Requiring proof of prior use in such cases would undermine the statutory recognition of proposed-to-be-used trademark applications. The relevant inquiry was whether the mark was registrable on its own merits, not whether it had already acquired a reputation through use.

    Outcome

    The Court allowed the appeal, set aside the refusal order dated 24 January 2025, and directed the Trade Marks Registry to advertise β€œDOUBLE-CHOICE” in Class 30. After advertisement, the application is to proceed in accordance with the Trade Marks Act, 1999 and the Trade Marks Rules, 2017.

    Why the ruling matters

    This decision reinforces important principles for trademark applicants and examiners:

    • Assess the mark as a whole: Common individual words do not automatically make their combination non-distinctive.
    • Require a direct descriptive link: A refusal for descriptiveness must be tied to a real and immediate characteristic of the claimed goods, not a speculative association.
    • Give reasoned decisions: A refusal should explain why the mark cannot distinguish the applicant’s goods and should be grounded in relevant material.
    • Respect proposed-to-be-used filings: Absence of market use cannot be treated as a defect where the application is validly filed on that basis.

    The ruling offers a clear reminder that trademark examination must rest on the actual commercial impression created by a mark and on evidence-based reasoning, rather than on the separate meanings of its component words.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • CESTAT Delhi- Related-Party Imports Alone Cannot Justify Rejection of Declared Value

    CESTAT Delhi- Related-Party Imports Alone Cannot Justify Rejection of Declared Value

    Date: 03.11.2026

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has allowed the appeals of Diyas Mantra Lighting Pvt. Ltd. and its directors, ruling that Customs had not established that the company’s relationship with its UK supplier influenced the declared import prices.

    Background of the dispute

    The case arose from imports of electric decorative lighting fixtures under the brands β€œDiyas” and β€œmAntra.” Diyas Mantra Lighting Pvt. Ltd. filed a bill of entry at ICD Tughlakabad on 21 January 2015 for clearance of a consignment valued at Rs. 19.01 lakh.

    Customs alleged that the importer had not declared the brands on its import documents and had undervalued the goods to reduce customs duty. The department also examined earlier imports and contended that the company’s UK supplier, Inspired Lighting Ltd., was a related party.

    The department relied on several circumstances to support its case, including common directorship and shareholding involving Anil Kumar Anand, financial dealings between the entities, and catalogue references identifying Diyas Mantra as the India office of the UK supplier’s brand.

    Earlier proceedings and Supreme Court remand

    In the original adjudication, Customs rejected the declared value of the live consignment and 20 earlier bills of entry. It re-determined the assessable value using a deductive method based on domestic sale prices, imposed differential duty, ordered confiscation, levied redemption fines, and imposed penalties on the importer and its directors.

    CESTAT initially upheld that decision in 2017. However, the Supreme Court set aside both the original Customs order and CESTAT’s earlier ruling in April 2019. It held that the Customs Valuation Rules require a sequential approach:

    • First, authorities must assess whether transaction value can be accepted under Rule 3.
    • If it cannot, they must examine identical goods under Rule 4 and similar goods under Rule 5.
    • Only after those methods are unavailable may they proceed to later valuation methods, including deductive valuation under Rules 7 to 9.

    The Supreme Court observed that data from non-related suppliers in China and Spain could be relevant to the valuation exercise, subject to appropriate adjustments.

    Customs’ de novo order

    After remand, Customs again held that the UK supplier and Diyas Mantra were related parties and that the relationship had influenced prices. It rejected the declared values for the live consignment and 13 past UK bills of entry.

    The de novo order:

    • Re-determined the live consignment’s value from Rs. 19.01 lakh to Rs. 52.22 lakh.
    • Re-determined the value of 13 earlier UK imports from Rs. 2.16 crore to Rs. 4.46 crore.
    • Confirmed differential duty of Rs. 9.53 lakh for the live shipment and Rs. 74.85 lakh for the past UK imports.
    • Imposed redemption fines of Rs. 10 lakh and Rs. 89 lakh in relation to the goods.
    • Imposed equivalent penalties on the company under Section 114A of the Customs Act.
    • Imposed penalties of Rs. 10 lakh each on directors Rahul Mehta and Anil Kumar Anand under Section 112(b).

    At the same time, Customs dropped a differential-duty demand of Rs. 48.41 lakh concerning seven imports from Spain and China, finding no evidence that those suppliers were related to the importer.

    CESTAT’s reasoning

    CESTAT found that, even if the importer and the UK supplier were related, that fact alone did not justify rejection of the transaction value. Under Rule 3(3)(a) of the Customs Valuation Rules, Customs needed to establish that the relationship actually affected the price.

    The Tribunal noted a central inconsistency in the department’s case: Customs accepted the transaction values for comparable goods imported from unrelated suppliers in Spain and China, but did not demonstrate how the UK prices were distorted by the related-party relationship.

    The Tribunal emphasized that the declared transaction value is normally the basis for customs assessment. To reject it, the department must provide cogent evidence that the declared price is not genuine or that the relationship affected pricing. Mere suspicion, related-party status, or assertions of possible financial flow-back are insufficient without a demonstrated impact on the import price.

    CESTAT also relied on the Supreme Court’s earlier direction that the valuation rules must be applied sequentially. It held that Customs could not move to a deductive valuation method under Rules 7 and 9 without adequately establishing why Rules 3 to 5 could not support the assessment.

    Final outcome

    CESTAT set aside the entire adverse order against Diyas Mantra Lighting Pvt. Ltd. and its directors. Specifically, it:

    • Accepted the declared value for the live consignment covered by Bill of Entry No. 8059523 dated 21 January 2015.
    • Set aside the re-determination of value for the UK imports.
    • Set aside the differential-duty demand and related interest.
    • Set aside confiscation of the live shipment and goods seized from the importer’s godown.
    • Set aside redemption fines.
    • Set aside penalties imposed on the importer under Section 114A.
    • Set aside personal penalties imposed on the two directors under Section 112(b).

    The appeals were allowed by Final Order Nos. 51642-51644/2026, pronounced on 29 October 2026.

    Key legal takeaway for importers

    The ruling reinforces that a related-party relationship does not automatically invalidate an import transaction value. Customs must establish, with evidence, that the relationship influenced the price. Where comparable imports from unrelated suppliers are available and accepted, authorities must meaningfully address that evidence before rejecting the declared value or resorting to alternative valuation methods.

    For customs valuation disputes, the decision underlines two important safeguards: transaction value remains the primary method of valuation, and the Customs Valuation Rules must be applied in their prescribed sequence.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Karnataka HC Grants Regular Bail After Treating Ganja Seizure as Intermediate Quantity

    Karnataka HC Grants Regular Bail After Treating Ganja Seizure as Intermediate Quantity

    Date: 03.11.2026

    The Karnataka High Court granted regular bail to Kiran Kumar, finding that the alleged seizure fell within the intermediate-quantity category, the statutory bar under Section 37 of the NDPS Act did not apply, and the investigation was nearly complete.

    Background of the case

    The case arose from Crime No. 105/2026 registered at Mandya West Police Station. Police alleged that, on 11 August 2026, they received information that two individuals were attempting to sell ganja to members of the public and students within the station limits.

    Following the information, police conducted a raid and apprehended two accused persons. The prosecution alleged that a total of 1 kg and 25 grams of ganja was recovered and seized under a panchanama. Of this, 810 grams was alleged to have been recovered from Kiran Kumar, who was arraigned as Accused No. 1.

    Kiran Kumar was arrested on 11 August 2026 and remanded to judicial custody. His earlier bail application was rejected by the trial court on 15 September 2026. He then approached the High Court under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking regular bail in the case registered under Section 20(b)(ii)(A) of the Narcotic Drugs and Psychotropic Substances Act, 1985.

    Why the High Court granted bail

    Justice S. Vishwajith Shetty considered the quantity allegedly seized, the petitioner’s criminal record, and the status of the investigation.

    1. The alleged quantity was treated as intermediate quantity

    The Court noted that the total alleged recovery was slightly more than 1 kg of ganja. It treated this as an intermediate quantity rather than a commercial quantity. This classification was important because the stricter bail limitations applicable to commercial-quantity NDPS cases were not attracted.

    2. Section 37’s stringent bail restriction was held inapplicable

    The Court specifically observed that the rigor of Section 37(1)(b) of the NDPS Act could not be applied against the petitioner in the circumstances of the case. Section 37 imposes additional restrictions on bail in specified serious NDPS matters, particularly those involving commercial quantities.

    3. No prior NDPS case was shown against the petitioner

    The order records that Kiran Kumar had no other case registered against him for offences under the NDPS Act. The absence of prior NDPS allegations weighed in favour of granting bail.

    4. Investigation was almost complete

    The Court also took into account that the investigation was nearly complete. This reduced the concern that the petitioner’s release could interfere with the investigative process.

    Bail conditions imposed by the Court

    Although the petition was allowed, the High Court made the release subject to safeguards intended to secure the petitioner’s participation in the trial and protect the prosecution process. Kiran Kumar must:

    • Execute a personal bond of Rs. 1,00,000 with two sureties for the same amount, to the satisfaction of the jurisdictional court.
    • Appear regularly before the trial court on every hearing date, unless exempted for valid reasons.
    • Refrain from directly or indirectly threatening, influencing, or tampering with prosecution witnesses.
    • Not commit similar offences in the future.
    • Remain within the jurisdiction of the trial court unless permission is granted to leave, until the criminal case is disposed of.

    Legal significance of the order

    The order illustrates that bail in an NDPS prosecution depends heavily on the alleged quantity of contraband, the applicability of Section 37, the accused person’s prior record, and the stage of investigation. The Court did not decide guilt or innocence; it made a limited determination that regular bail could be granted with conditions while the case proceeds before the trial court.

    The petition was allowed on 30 October 2026, and Kiran Kumar was ordered to be released on bail subject to compliance with the stated conditions.

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  • Telangana High Court Quashes Customs Confiscation of Used MFD Imports

    Telangana High Court Quashes Customs Confiscation of Used MFD Imports

    Date: 02.11.2026

    The Telangana High Court has ruled that a later amendment imposing a 100-unit-per-model annual threshold could not be used to confiscate Arka Business Solutions’ consignment of used multi-function devices (MFDs) imported before that amendment took effect.

    Background of the dispute

    Arka Business Solutions, an importer and seller of used digital multi-function devices, imported 73 used MFDs from the United States. The company filed its Bill of Entry on 4 June 2026 at ICD Thimmapur.

    Customs examined the consignment on 19 June 2026. A Chartered Engineer appointed at Customs’ instance found that the machines were functional second-hand capital goods, had more than six years of residual life, were neither hazardous waste nor electronic waste, and each weighed more than 80 kg.

    Those findings were significant because the weight criterion placed the devices within the exemption for Highly Specialised Equipment (HSE) under the Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2021 (CRO 2021).

    Customs’ decision to confiscate the goods

    Despite the technical certification, Customs issued a show-cause notice alleging that the importer required DGFT authorisation under the Foreign Trade Policy, 2023, and had not met BIS registration requirements. The adjudicating authority subsequently divided the 73 machines into two categories:

    • 36 units were treated as prohibited goods because their models allegedly exceeded a 100-unit annual threshold when imports by all importers across India were counted. These units could be redeemed only for re-export, subject to a redemption fine of Rs. 1,33,257.
    • 37 units were treated as restricted goods. Customs allowed redemption for home consumption on payment of a Rs. 3,95,021 redemption fine.

    The order was based on the view that the 100-unit threshold under the amended Paragraph 8 of CRO 2021 applied nationally and across unrelated importers.

    Court’s findings: the amendment could not operate retrospectively

    The High Court set aside the confiscation order, holding that the amendment adding the quantitative limit came into force only on 15 June 2026. Since Arka Business Solutions had filed its Bill of Entry on 4 June 2026, the amended provision did not govern the import.

    The Court emphasized that subordinate legislation is presumed to operate prospectively unless it clearly states otherwise. The notification did not contain language giving it retrospective effect.

    Under Section 15 of the Customs Act, the relevant legal position for goods entered for home consumption is determined on the date the Bill of Entry is presented. Accordingly, later events, including the Customs examination, show-cause notice, and adjudication order, could not subject the earlier import to a restriction that was not in force at the relevant time.

    Why the 100-unit interpretation was also flawed

    The Court found additional defects in Customs’ reasoning. The language of the amended provision referred to equipment β€œmanufactured/imported in less than 100 units per model per year,” but did not expressly create an industry-wide cap shared by all importers.

    The Court observed that Customs had not explained why one importer should lose an exemption because unrelated importers had brought in the same model. A restrictive interpretation that limits an exemption on the basis of third-party imports required clear statutory language, which was absent.

    The Court also noted that the show-cause notice did not tell the importer that eligibility would be tested using all-India import data from other importers. Deciding the case on a basis not disclosed in the notice violated the principle that a noticee must know the case it has to answer.

    HSE exemption meant the devices were freely importable

    The Court reaffirmed its earlier interpretation of the relationship between CRO 2021 and the Foreign Trade Policy. Where used MFDs satisfy the HSE exemption, the compulsory registration requirement does not apply. As a result, the import cannot be treated as restricted under the provision dealing with second-hand goods subject to CRO compliance.

    Instead, qualifying goods fall within the category of freely importable second-hand capital goods. Since the Chartered Engineer had confirmed the devices met the weight threshold and were functional capital goods rather than e-waste, there was no basis to classify them as prohibited or restricted.

    The Court therefore found no basis for confiscation under Section 111(d) of the Customs Act. It also held that the record did not support allegations of misdeclaration under Section 111(m) or a penalty under Section 112.

    Outcome and release conditions

    The High Court allowed the writ petition and quashed the Customs order to the extent it:

    • classified the goods as prohibited or restricted;
    • confiscated them under Section 111(d);
    • imposed redemption fines; and
    • imposed any related penalty.

    Customs was directed to release the goods covered by the Bill of Entry, subject to conditions adopted from an earlier Arka Business Solutions decision. These conditions require the importer to deposit the enhanced duty amount after Customs quantifies it, while preserving the parties’ rights to pursue valuation issues separately. The Court also stated that any demurrage-waiver request must be considered objectively.

    Key legal takeaway

    The ruling confirms that import restrictions and exemption conditions must be assessed under the law in force when the Bill of Entry is filed. Customs cannot apply a later quantitative restriction retrospectively, expand an exemption limitation through an unclear all-India interpretation, or rely on grounds that were not put to the importer in the show-cause notice.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi