2003 (12) TMI 544 - AT - Central Excise

Summary

Issues:
1. Denial of benefit of SSI Notification No. 1/93 to the appellants for manufacturing Silencers for Scooters due to the use of another manufacturer's brand name.
2. Determination of similarity between Motor Cycle Silencers and Silencers used in Scooters.
3. Interpretation of case laws regarding the application of Para 4 of the Notification for small-scale units.

Analysis:
1. The Appellate Tribunal considered the denial of SSI Notification benefit to the appellants for using another manufacturer's brand name. The Tribunal noted that the mark used by both manufacturers comprised of similar letters and that the association of the mark with the original manufacturer persisted in the minds of trade persons. Despite the appellants' argument that the silencers were fitted to different vehicles, the Tribunal found that silencers as a group constituted one commodity. The Tribunal emphasized that the arrangement between the manufacturers aimed to sustain the association in customers' minds, leading to the dismissal of the appeal.

2. The Tribunal examined the similarity between Motor Cycle Silencers and Silencers used in Scooters. The appellants failed to provide material supporting the claim that the two types of silencers were not identical or similar goods. The Tribunal highlighted that both types of silencers served the same function and were used for the same kind of vehicles. Referring to a case law precedent, the Tribunal emphasized that to attract the provisions of Para 4, the specified goods manufactured by an SSI unit should have been cleared under the brand name of another person who used the same brand name on identical goods. Consequently, the appeal was dismissed based on the lack of evidence supporting the differentiation between the silencers.

3. In interpreting relevant case laws, the Tribunal discussed precedents such as the case of M/s. Ultraseal (India) Ltd. and Taj Serpent Eggs Factory. The decision in the Ultraseal case did not assist the appellants as it pertained to denial only for similar goods, for which no material was presented to establish dissimilarity. Similarly, the decision in the Taj Serpent Eggs Factory case did not support the appellant's argument as the products were distinct and technically different. The Tribunal found no valid grounds to overturn the order of the CCE (Appeals) based on the interpretation of these case laws, leading to the dismissal of the appeal.

In conclusion, the Appellate Tribunal upheld the denial of the SSI Notification benefit to the appellants, emphasizing the association of the brand name with the original manufacturer and the lack of evidence distinguishing between the silencers in question. The Tribunal's analysis of relevant case laws supported the decision to dismiss the appeal, highlighting the importance of establishing similarity between goods for the application of Para 4 of the Notification.