 "Dabur vs Tata in court as battle over 'schezwan chutney' trademark hots up")
Fast-moving consumer goods (FMCG) giant Dabur is set to issue a response to a notice issued by the Delhi High Court on February 5 in a trademark infringement case concerning its use of the name ‘Schezwan Chutney’ for one of its products. The notice, served last week, follows a plea by Tata Consumer-owned Capital Foods, which alleges trademark infringement, according to a report by Bar and Bench.
The legal faceoff follows Tata Consumer’s acquisition of Capital Foods in January 2024, aiming to broaden its product portfolio and penetrate high-margin categories in the FMCG sector. Dabur, a leading player in the industry with renowned brands like Chyawanprash and Real Juices, now faces this legal challenge amid ongoing disputes over the ‘Schezwan Chutney’ trademark.
Schezwan Chutney: Brand name or generic product?
Capital Foods, known for brands like Ching’s Secret and Smith & Jones, claimed that ‘Schezwan Chutney’ is a recognised name associated with the company, supported by significant investments in brand promotion. The company accused Dabur of misleading consumers by adopting the same brand name and similar packaging, arguing that Dabur prominently displays ‘Schezwan Chutney’ while its own brand name is less visible.
Dabur launched its own Schezwan Chutney last year and has since contested the trademark registration at the Trademarks Registry. The company argues that ‘Schezwan Chutney’ describes the type and quality of the product and should not qualify for trademark protection, labelling the term as generic.
Dabur India faces Rs 3 cr GST demand
In a separate development, Dabur has received a demand notice amounting to Rs 3.47 crore, including applicable interest, from the Additional Commissioner of CGST & CX, Kolkata South Commissionerate. This comprises a tax demand of Rs 1.73 crore, a penalty of Rs 1.73 crore, and interest under Section 50 of the CGST Act, 2017.
The demand pertains to the disallowance of transitional credit in West Bengal.
Dabur plans to appeal the demand before the First Appellate Authority, expressing confidence in securing a favourable outcome.