2002 (10) TMI 560 - AT - Central Excise

Summary

Issues:
1. Eligibility of the appellants for small scale exemption under Notifications No. 175/86 and 1/93 due to the use of the trade name/brand name "Lovejoy" on their products.

Analysis:
The primary issue raised in this appeal before the Appellate Tribunal CEGAT, Mumbai was whether the appellants were eligible for small scale exemption under Notifications No. 175/86 and 1/93 considering the use of the trade name/brand name "Lovejoy" on their products. The impugned order had denied the small scale exemption on the basis that the brand name "Lovejoy" belonged to M/s. Lovejoy Inc. USA. It was established that manufacturers affixing the brand name of another person on their products are excluded from the benefit of small scale exemption under the mentioned notifications.

The appellants contended that the finding in the impugned order was not maintainable as the brand name "Lovejoy" belonged to them and had been registered in their favor under the Trade and Merchandise Marks Act, 1958. They presented the certificate of registration of Trade Mark No. 3210138 dated 10-12-76 issued in their favor as evidence. The appellants emphasized that the registration by the appropriate authority confirmed their ownership of the brand name in India. They also highlighted that the foreign company, M/s. Lovejoy Inc. USA, had not claimed ownership of the brand name in India. The legal position cited by the appellants was supported by the judgment of the Hon'ble Calcutta High Court in the case of Collector of Central Excise, Calcutta-I v. ESBI Transmissions Private Ltd. [1997 (91) E.L.T. 292], which clarified that if a brand name belongs to a foreign company but is registered in India in the name of an Indian party, the Indian party has the exclusive right to use that brand name in India.

Upon reviewing the records of the case, it was evident that the brand name "Lovejoy" had been registered in the appellants' name by the Trade Marks Authorities, granting them an exclusive right to use the trade name in relation to the goods for which the trademark was registered. This exclusive right entitled the appellants to seek relief against any person in India under the Trade and Merchandise Act. The Tribunal noted that no other person, apart from the appellants, was entitled to use the trade name/brand name "Lovejoy" in India. The presence of a foreign company with a similar name was deemed irrelevant to the appellants' claim to the trademark, especially since the foreign company had not asserted any claim to the trademark in India.

In light of the factual and legal positions presented, the appeals were allowed by the Appellate Tribunal CEGAT, Mumbai, after setting aside the impugned order that had denied the small scale exemption to the appellants based on the ownership of the brand name "Lovejoy."