2004 (2) TMI 525 - AT - Central Excise

Summary

Issues: Whether the respondent-assessee is entitled to the concessional rate of duty based on SSI exemption under Notification Nos. 16/97, 8/98, and 8/99.

Analysis:
1. The main issue in these appeals is whether the respondent-assessee is eligible for the concessional rate of duty under specific notifications despite using a common symbol/monogram "(S)" on their packaging material, which is also used by other units of Sanghi Group of Industries. The Revenue argued that this common symbol disqualifies the respondent from the benefit of the concessional rate as it implies association with a different entity.

2. The Commissioner (Appeals) analyzed the situation and concluded that the symbol "(S)" is a house mark for identification of the manufacturer and is followed by the name of the specific unit within the Sanghi Group. It was noted that the goods produced by the respondent were unique to their manufacturing process and not replicated by other Sanghi Group companies. The Commissioner referred to relevant Board Circulars and past tribunal decisions to support the assessee's eligibility for the SSI exemption.

3. The Revenue contended that the use of the monogram "(S)" by the respondent links their products to the Sanghi Group of Industries, providing them an unfair advantage in the market and defeating the purpose of SSI exemptions. They argued that even if the products were different, the benefit should not apply. Reference was made to a previous decision to support this argument.

4. The Tribunal, after considering both sides, upheld the Commissioner (Appeals)'s decision, stating that the respondent's use of the common symbol "(S)" as a house mark for all Sanghi Group products does not disqualify them from SSI benefits. They cited a Larger Bench decision and a Supreme Court ruling to distinguish between a house mark and a product mark, emphasizing that the symbol "(S)" serves as an identification of the manufacturer, not the product itself. Therefore, the respondent was deemed eligible for the SSI Notifications, and the Revenue's appeals were dismissed.