2004 (8) TMI 497 - AT - Central Excise

Summary

Issues:
1. Eligibility of benefit of SSI exemption on goods cleared to specific companies for use in their final products.
2. Interpretation of Supreme Court decisions on the use of brand names affecting exemption eligibility.

Analysis:
1. The primary issue in this case revolves around the eligibility of the appellant for the benefit of Small Scale Industries (SSI) exemption on goods cleared to specific companies, namely M/s. Bajaj Auto and M/s. Siemens, for use in their final products as original equipment. The parts cleared by the appellant bear the logo (Brand Name) of the buyers, raising questions about the applicability of the SSI exemption in such scenarios.

2. The second issue pertains to the interpretation of Supreme Court decisions, specifically the cases of Rukmani Pakkwell Traders and CCE v. Mahaan Dairies. The Apex Court, in the Rukmani Pakkwell Traders case, established that the exemption would be forfeited if the brand name or trade name is used, regardless of whether it is on the same goods for which it is registered. This legal principle sets a precedent that impacts the current case, as highlighted by the Member (T) in the judgment.

3. The judgment references the advocate's reliance on the decisions of Prakash Industries and S.A. Industries to argue that the goods in question, bearing the brand name logo, will not enter the market as they are intended for original equipment supply. However, the Member (T) dismisses this argument, emphasizing that the placing of the logo indicates a connection in trade, aligning with the Supreme Court's stance on the matter.

4. Ultimately, based on the legal analysis and precedents cited, the appeal is deemed to lack merit, leading to the conclusion that the appellant is not eligible for the SSI exemption in this case. The order directs the dismissal of the appeal in accordance with the findings and legal principles discussed in the judgment.

This comprehensive analysis of the judgment highlights the key issues, legal interpretations, and the ultimate decision reached by the Appellate Tribunal CESTAT, Mumbai, providing a detailed overview of the case and its implications.