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Sales Tax Review |
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August 2007 |
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Roving Eye |
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60 years of Independence!
On 15th August, 2007 we as a nation, heartily saluted our
tricolours national flag and everyone in his mind was looking back and
assessing the benefits of our independence. Of course, in the life of the
nation, 60 years milestone is not a long journey. But in the life of an
individual who is born after independence, the period of 60 years is very
valuable in his life in terms of the social benefits that he has received.
Looked from this point of view, the scenario is not heart warming, nay,
disturbing to any serious and sentimental person. Anyway, life goes on !
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On this
memorable day, the Supreme Court Bar Association had organized a function to
celebrate ‘Independence Day’ and the Chief Guest was Hon’ble CJI Mr. K. G.
Balakrishnan. On this occasion he said, “In a caste and gender sensitive
society, the role of the Judiciary has become more meaningful than ever which
I may call as “Social Engineering” concerning the common man and the
community. This is so because it has continuously strived to protect the
fundamental rights of the citizens and has not wavered from its path of
upholding the rule of law.”
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Echoing his
words, Solicitor-General Mr. G. E. Vahanvati said, “India is the only country
in Asia where rule of law is firmly entrenched in the society and the credit
for this must go to the judiciary, which has always looked after those whose
fundamental rights have been violated.”
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Therefore, to us
as lawyers, while we are proud of the judicial system of which we are a part
and parcel, but we are totally dissatisfied with the political system
obtaining in our country. And, politicians themselves should provide an answer
to this decayed system and bring the same to its original glory, as was the
case during pre-independence era.
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Whilst on the
subject, it will be appropriate to note the views of Mr. Narayana Murthy,
Chairman & Chief Mentor of Infosys, who said: “We need modern honest leaders
who can benchmark with the best. We need young and energetic politicians, not
people who are close to dying”. As regards the achievements of the nation he
said, “There are lots of good things that India has achieved; we have produced
world-class Scientists, Doctors and Engineers. We have reduced poverty and
increased literacy; we have sent rockets to space. However, the job is not
fully done, we still have the largest mass of illiterates in the world and the
malnutrition levels are really high. There are 150 million Indians who do not
have access to drinking water and 750 million who do not have decent
sanitation. But today, I would like to focus on what we have achieved rather
than what still remains to be done”. Talking about Infosys contribution, he
said, “How can I say that myself, you should ask others. However, I will give
credit to Infosys for creating the largest corporate governance programme and
a very democratic distribution of wealth. My driver has a million dollars of
wealth today.”
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Designs
registered under the Designs Act, 1911
Entry C-39
appended to MVAT Act, 2002 pertains to goods of intangible nature as may be
notified, from time to time by the State Government in the Official Gazette.
Under Notification No. VAT-1505 / CR-114 / Taxation-1 dated 1st April, 2005,
Notification has been issued listing down therein entries at serial No. 1 to
14 pertaining to intangible goods. Entry at serial No. 10 therein pertains to
“Designs” registered under the Designs Act, 1911 (Readers may note that the
Designs Act, 1911 has been repealed vide section 48 of the Designs Act No. 16
of 2000).
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We have come
across a decision of the Bombay High Court, under Designs Act (16 of 2000) in
Suit No. 2961 of 2006 decided on 27-2-2007, in the case of Marico Ltd. vs. Raj
Oils Ltd. (2007) (4) Mh. L.J. (Bom), in which section 2(a) of the Designs Act,
2002 came for the consideration of the Hon’ble Court. U/s 2(a) – “Article” is
defined as under: -
“(a) “article” means any article of manufacture and any substance, artificial,
or partly artificial and partly natural; and includes any part of an article
capable of being made and sold separately.”
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In the above
case, the dispute was about the interpretation of the definition “article” as
above. On the facts of the case narrated hereafter, the Court held that: –
“Merely because a part of the article can be made separately and sold
separately, it should not be taken as covered by the phrase unless the part
has an identity in the market by itself.”
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In this case,
the plaintiff – Marico Ltd. claimed a registered design in respect of a
‘stylized bottle cap’ used on their bottle while selling their coconut oil
under the brand name Parachute. Since the defendant – Raj Oils Mills Ltd. was
using similar designed cap on the bottle of their coconut oil product, the
plaintiff sought an injunction against the defendant.
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The plaintiff,
by a notice of motion, sought an injunction restraining the defendant from
infringing or pirating the registered design of the plaintiff and from
manufacturing or selling any article embodying the plaintiff’s registered
design or applying the plaintiff’s registered design or any imitation thereof
to / on / upon the bottle caps of the defendant’s products or any other
article. The plaintiff claimed a registered design in respect of a stylized
bottle cap used on their bottle while selling their coconut oil under the
brand name ‘Parachute’. They had attached their registration certificate along
with photographs of their registration to the plaint. The cap in respect of
which the design was registered was a plastic cap with a plastic lid on the
cap which moves on a plastic hinge which has the contours of a butterfly. As
against this, the defendant used a similar cap with a similar movable lid and
a hinge in plastic also with a contour of a butterfly. There was, however, a
slight difference in the shape of the lid. The lid of the plaintiff’s cap had
sharp indentation whereas the lid on the defendant’s cap had curved
indentation. The cap which is threaded from inside was admittedly used by both
the parties to close their bottles containing coconut oil. It was, in that
sense, a part of the bottle.
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The Court
against the above background observed that, the plaintiff in the ordinary
course might have been entitled to an injunction on the basis of the
registered design of the cap because of similarity of the defendant’s cap with
that of the plaintiff. However, under the Designs Act, 2000 it is opened to a
defendant to raise, inter alia, the plea that the plaintiff’s design is not
registrable as a ground of defence. In fact, under sub-section (3) of section
22, the defendant can raise every ground on which the registration of a design
may be cancelled u/s. 19 as a defence.
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The defendant
therefore contended in this case that the plaintiff’s design in respect of the
cap was not registrable under the Designs Act, 2000. Since under the Act,
“design” means the features of shape, on configuration etc; applied to an
article, a design can only be registered in respect of an article. As such,
the defendant contended that the registration of the design obtained by the
plaintiff was not valid since the cap could not have been considered to be an
“article” as defined in section 2(a), as mentioned hereinabove. They further
contended that it was the cap which may be loosely called an article was
nonetheless, not an article since it did not stand alone as an article for
sale nor it could be described as a part of an article because it was not
capable of being sold separately. The Court thereafter noticed the decision
cited by the defendant of the House Lords in Ford Motor Co. Ltd.’s Design
Applications, reported in (1995) R. P. C. 167.
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Thereafter, the
Court opined that it is in respectful agreement with the said judgment and
also of view that the Indian statute should not be read literally. Merely
because a part of the article can be made separately and sold separately, it
should not be taken as covered by that phrase unless the part has an identity
in the market by itself. Indeed, a part must have an independent life as an
article of commerce and not be merely an adjunct of some larger article of
which it forms part. The cap involved in the present case cannot be said to
have an independent life of an article of commerce. Hence, prima-facie, in my
view, the article in question; i.e., the cap in which the plaintiff has a
registered design was not an article within the meaning of section 2(a) which
was capable of registration. Accordingly, the plaintiff, therefore, does not
have a prima-facie right to an injunction to restrain the defendant from using
a similar cap.
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Readers may find
the above judgment useful in future while dealing with cases that may come in
dispute under the Designs Act.
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Right to
Information Act, 2005
The Hon’ble
Bombay High Court in Surupsingh Naik vs. State of Maharashtra and Ors. in W.P.
No. 1750 of 2007 decided on 23-3-2007 (2007) (4) Mh. L.J. 573 (Bom),
considered sections 8, 11 and 19 of the said Act.
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In the said
petition filed by Surupsingh Naik, the Court briefly noted the following
facts:–
“1. The petitioner is presently a Member of the Legislative Assembly of the
State of Maharashtra. Contempt proceedings had been initiated against the
petitioner by the Hon'ble Supreme Court, which imposed on him imprisonment of
one month, by judgment dated 10th May, 2006. The petitioner on 12th May, 2006
surrendered to the Police Authorities in Mumbai and was taken in custody. On
14th May, 2006 petitioner was shifted to Sir J.J. Hospital, Mumbai on account
of suspected heart problems as well as low sugar and blood pressure. According
to the petitioner he underwent medical treatment at Sir J.J. Hospital, Mumbai
for the period of 21 days and was discharged on 5th June, 2006. Petitioner
served the remaining tenure of imprisonment till 11th June, 2006 in jail on
which day he was released from custody on completing the period of sentence.
The petitioner contends that he is suffering from various diseases such as
diabetes, heart problem and also blood pressure from 1998-99 onwards and has
been admitted to hospital on various occasions on account of his health
problems.”
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A private
citizen by an application dated May 27, 2006 sought from the respondent; i.e.,
the PIO of Sir J.J. Hospital, Mumbai, the medical reports of the Petitioner,
who refused the same. Thereupon, the private citizen filed First Appeal
without success. Thereafter, Second Appeal was filed with success and the
State Information Commission directed to Sir J.J. Hospital to give the
required information to the private person. Meantime, the said Hospital wrote
to the petitioner to put up his say whether the information should be given or
not. There was nothing on record to indicate whether the petitioner replied to
the said letter.
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The Court
analysed the legal provisions of the RTI Act, and other relevant Act as
under:–
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Right to
Information Act r/w Indian Medical Council (Professional Conduct, Etiquette
and Ethics) Regulations, 2002. The Right to Information Act, is an enactment
by Parliament and the provisions contained in the enactment must, therefore,
prevail over an exercise in subordinate legislation, if there be a conflict
between the two.
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U/s of the RTI
Act Public Information Officer may disclose personal information in public
interest.
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The scheme and
aim of the Act is to provide for setting out a practical regime of right to
information for citizens, to secure access to information under the control
of public authorities as also to promote transparency and accountability in
the working of every public authority. These objects of the legislature are
to make our society more open and public authorities more accountable.
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U/s 6(2) of
the Act, the applicant is not required to give any reasons for
requesting/obtaining the information. Hence, in this case, the contention of
the respondent-Hospital as well as the petitioner that information given may
be misused really in our opinion would not arise considering the object
behind section 6(2) of the Act.
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U/ss. 11 and
19(4) opportunity of hearing to the third party before giving information is
not an empty formality. Therefore, before any order is passed a third party
has to be given notice in order that he may be heard.
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After noticing
the law and the facts of the case, the High Court opined that for the
failure by Respondent No. 2; i.e., the State Information Commission, to give
an opportu-nity to the petitioner the impugned order will have to be
set-aside and the matter remanded back to the Commission to give an
opportunity to the petitioner and thereafter dispose of the matter according
to law. Considering the public element and interest involved we direct the
Commission to dispose of the matter on remand within 30 days from today;
i.e., 23-3-2007.
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Accordingly, it
is now public knowledge, that the State Commission directed the J.J. Hospital
to furnish all medical reports to the private person as per his application.
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