Bombay High Court: Cross-Border Trademark Transfers Are ‘Exports’, Not Taxable as Local Sales

The Bombay High Court has ruled that cross-border trademark transfers constitute export of goods rather than local sales, making them ineligible for taxation under the Bombay Sales Tax Act, 1959. 

The Court applied the principle that the situs of intangible property follows its owner (mobilia sequuntur personam), holding that the ‘Crocin’ trademark juridically moved outside India upon its assignment from Duphar Interfran Ltd. to SKB Plc (UK).

The court emphasized that international trademark assignments fall under export transactions, aligning with the Central Sales Tax Act's definition of goods movement outside India, even when the asset is intangible and involves no physical transfer.

[M/s. Duphar Interfran Ltd. v. The State of Maharashtra]