( 1 ) THE appellant is a registered dealer under the Karnataka Sales Tax Act, 1957 (KST Act for short ). The appellant is the Licence and registered user of the Trade Mark Whirlpool in terms of the Trademark and Tradename Licence Agreement dated 24-2-1995 executed between M/s Whirlpool Corporation, USA, who is stated to be the proprietor and owner of the said Trade Mark and the Appellant. The licence granted to the appellant to use the Trade Mark is non-transferable.

( 2 ) ON 4-2-2003, the Appellant entered into an agreement with M/s Applicomp India Limited (for short APPLICOMP or the MANUFACTURER) under which APPLICOMP agreed to manufacture and supply electronic products and electrical appliances such as Refrigerators, Washing Machines, Air Conditioner etc. , to the Appellant on Original Equipment Manufacture basis, as per the specifications of the appellant. Relevant portions of clauses 4, 5, and 6 of the Agreement are extracted below: the manufacturer is exempted from payment of Sales Tax for the goods manufactured at its factory at Hosur Road, Attibele. . "4. The buyer hereby warrants that the Buyer is the owner of all rights in the Trademark Whirlpool and has th