Sections 45 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 45 says that sections 39, 40 and 41 do not make an act an offence where that act is permitted by the Act or by any other law, in relation to a registered geographical indication. Section 46 lets a court direct forfeiture to Government of the goods and things used in or connected with an offence, even where the accused is acquitted on certain defences. If goods have been seized from you or your client, our legal consultation team can advise on the forfeiture order and the appeal window.
Section 45: the offences in sections 39, 40 and 41 are subject to the rights created or recognised by this Act; an act is not an offence if it relates to a registered indication and is permitted under this Act or under any other law for the time being in force. Section 46: on conviction under 39, 40 or 41, or acquittal on proof of no intent to defraud or of a section 40 defence, the court may direct forfeiture to Government of the goods and things. An appeal against forfeiture on acquittal lies within thirty days where the goods are worth more than fifty rupees.
Status after the amending Acts
Neither section is on the Tribunals Reforms Act, 2021 list, and neither is touched by the Jan Vishwas (Amendment of Provisions) Act, 2023. The printed wording is current. Both sections work on the offences in sections 39, 40 and 41, which remain offences for a court; they do not apply to the section 42(2) penalty.
Section 45: no offence in certain cases
Section 45 reads: the provisions of sections 39, 40 and 41, "in relation to a registered geographical indication or authorised user of such geographical indication, be subject to the rights created or recognised by this Act and no act or omission shall be deemed to be an offence under the aforesaid sections if":
- (a) the alleged offence relates to a registered geographical indication and the act or omission is permitted under this Act; and
- (b) the alleged offence relates to a registered geographical indication and the act or omission is permitted under any other law for the time being in force.
Drafting point. The two clauses are joined by "and", not "or". Read literally, both would have to be satisfied. The more natural reading, since the clauses describe two different sources of permission, is that either is enough. The text does not settle the point, and a defence under section 45 should be pleaded on whichever clause actually fits.
What section 45 does in practice: a registered indication carries rights, including the rights of authorised users (explained in the article on section 21). Using the indication within those rights cannot be an offence of falsifying it or falsely applying it. Examples of use permitted under the Act include an authorised user applying the indication to genuine goods.
Example. Farid Looms is a registered authorised user of an invented textile indication. It prints the indication on its genuine cloth. A competitor complains of an offence under section 39. Section 45 answers it: Farid Looms' act is permitted under the Act, so it is not an offence under sections 39 to 41.
Section 46: forfeiture of goods
Sub-section (1): when the court may order forfeiture
Where a person is:
- convicted of an offence under section 39, 40 or 41; or
- acquitted of an offence under section 39 or 40 on proof that he acted without intent to defraud; or
- acquitted under section 40 on proof of the matters in clause (a), (b) or (c) of that section (reasonable precautions, information on demand, or otherwise innocent),
the court convicting or acquitting him "may direct the forfeiture to Government of all goods and things by means of, or in relation to, which the offence has been committed, or but for such proof as aforesaid would have been committed."
The power is discretionary ("may"). It reaches "all goods and things", which includes tools, dies and packaging as well as stock. In the printed text the words "intend or defraud" appear where "intent to defraud" is plainly meant; this is a drafting slip.
Sub-sections (2) to (4): appeal and disposal
| Sub-section | Rule |
|---|---|
| (2) | When forfeiture is directed on a conviction and an appeal lies against the conviction, an appeal lies against the forfeiture also |
| (3) | When forfeiture is directed on acquittal and the goods or things are of value exceeding fifty rupees, an appeal against the forfeiture may be preferred within thirty days from the date of the direction, to the court to which, in appealable cases, appeals lie from sentences of the court which directed the forfeiture |
| (4) | When forfeiture is directed on a conviction, the court before whom the person is convicted may order any forfeited articles to be destroyed or otherwise disposed of as the court thinks fit |
Sub-section (4) speaks only of forfeiture directed on conviction. The text does not give the court an express power to order destruction where forfeiture follows an acquittal.
Quick comparison
| Scenario | Forfeiture possible? | Appeal route |
|---|---|---|
| Convicted under s.39, 40 or 41 | Yes | Along with the appeal against conviction (s.46(2)) |
| Acquitted under s.39 or 40: no intent to defraud proved | Yes | Within thirty days if value exceeds fifty rupees (s.46(3)) |
| Acquitted under s.40: defence (a), (b) or (c) proved | Yes | Same as above |
| Acquitted for any other reason | The section does not give the power | Not applicable |
| Act permitted under the Act or other law (s.45) | No offence, so no section 46 trigger | Not applicable |
Interaction with seizure
Section 50(4) allows a police officer of the stated rank to search and seize without warrant, and section 50(5) allows a person with an interest to apply within fifteen days for restoration. The court's forfeiture power under section 46 comes at the end of the trial. The seizure process is explained in the article on section 50.
What the sections do not say
- They do not give a figure for the goods' value other than the fifty-rupee threshold for the thirty-day appeal.
- They do not say what happens to the proceeds of any sale of forfeited goods.
- Section 46 says nothing about forfeiture after a prosecution is dropped or time-barred.
- Neither section addresses the section 42(2) penalty.
Practical points
- If your goods are seized, take advice on both the seizure rules and the forfeiture risk.
- Even an acquittal on a defence may not save the stock; ask the court early what it intends to do with the goods.
- Diary the thirty-day period from the date of the forfeiture direction.
- Keep records showing that your use is within the registered rights; section 45 depends on them.
Need help with seized or forfeited goods?
Forfeiture and the thirty-day appeal period run from the court's direction, so early advice matters. Our legal consultation team can review the order, advise on the appeal route and help a rights holder or authorised user show that their use is within section 45.
Key takeaways
- Section 45: acts permitted by the Act or by another law, in relation to a registered indication, are not offences under sections 39 to 41.
- Section 46(1): the court may direct forfeiture to Government on conviction, and on acquittal based on no intent to defraud or the section 40 defences.
- Appeal against forfeiture on conviction goes with the conviction appeal; on acquittal, thirty days if goods exceed fifty rupees.
- Destruction or other disposal is expressly allowed where forfeiture follows a conviction.
Read next
- Section 41: enhanced penalty on second or subsequent conviction
- Sections 47–48: exemption of employees and procedure when invalidity is pleaded
- Section 50: cognizance and police search and seizure
- Infringement of geographical indication: penalties
Disclaimer: Based on the Geographical Indications of Goods (Registration and Protection) Act, 1999 read with the Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023, as consulted on 1 October 2026. Forms, fees and procedure are set by the rules made under the Act. This article is general information, not legal advice; check the official text before acting.