2004 (3) TMI 510 - AT - Central Excise

Summary

Issues:
1. Denial of small-scale exemption due to the use of a similar brand name.
2. Interpretation of the law regarding the use of deceptively similar trade marks for exemption eligibility.

Analysis:
The Appellate Tribunal CESTAT, Mumbai, addressed the issue of denial of the small-scale exemption to the appellants based on their use of the brand name 'KISHAN CEMENT,' which was claimed to be used by another manufacturer as well. The Adjudicating Commissioner noted that while the brand name was the same, the logo displayed above it could be different, indicating potential differences. The appellants argued that a previous judgment by the Hon'ble High Court of Madras in a similar case had ruled that manufacturers using deceptively similar but not identical trade marks should not be denied exemption. They also cited the case of Rukmani Pakkwell Traders v. CCE, Trichy, and other cases following the Madras High Court's decision.

Upon considering the arguments and reviewing the case records along with the cited legal precedents, the Tribunal found that although the name 'Kishan Cement' was common in both cases, there were variations in the logos used by the appellants. The Tribunal concluded that the appellants had established a prima facie case for the waiver of pre-deposit of duty and penalty based on the Madras High Court's decision and the Tribunal's ruling, which required the trade mark or brand name to be the same and not deceptively similar to trigger the restrictive clause in the contested notification. Consequently, the Tribunal decided to waive the pre-deposit of duty and penalty during the pendency of the appeal, allowing the appellants to proceed without immediate financial obligations.