2003 (8) TMI 346 - AT - Central Excise

Summary

Issues:
Whether the appellant was affixing the brand name of another person on the goods manufactured by them, making them ineligible for the small-scale exemption.

Analysis:
In the appeal by M/s. Unimode Calzatura Ltd., the central issue revolved around whether they affixed the brand name of another person on their goods, impacting their eligibility for the small-scale exemption. The appellant contended that the brand name "Caribou of London" belonged to them, supported by their application for trademark registration and declaration as brand owners. They argued that the Department failed to provide evidence that the brand name belonged to another entity, crucial for invoking Para 4 of the Small Scale Exemption Notification.

The appellant's advocate emphasized that the brand name was duly declared in their classification declaration, further reinforcing their ownership claim. They asserted that the Department's reference to the term "London" in the brand name as indicative of foreign association lacked substantial evidence. Additionally, they argued against the extended limitation period for duty demand under Section 11A of the Central Excise Act.

However, the Department, represented by Shri Kumar Santosh, contended that the Trade Mark Authorities' directive to remove "of London" from the brand name implied a rejection of the appellant's ownership claim. They highlighted the appellant's acquiescence to this directive as evidence against their ownership of the brand name, thus challenging their eligibility for the SSI notification benefit.

Upon evaluating both arguments, the Tribunal emphasized that the SSI units' duty exemption hinged on goods not bearing another person's brand name. The Department failed to establish that the brand name affixed by the appellant belonged to a different entity. Notably, the Department could not identify the owner of the brand name "Caribou of London," crucial for disqualifying the appellant from the SSI notification benefit. The Tribunal dismissed the Department's contention regarding the Trade Mark Registry's directive, asserting that the deletion of words did not negate the appellant's ownership claim. Absent conclusive evidence of external ownership, the Tribunal ruled in favor of the appellant, allowing their appeal.

Ultimately, the judgment underscored the necessity of concrete evidence to disprove an SSI unit's ownership claim over a brand name affixed to goods, emphasizing the critical role of brand ownership in determining eligibility for duty exemptions.