2004 (12) TMI 464 - AT - Central Excise

Summary

Issues: Availability of SSI exemption benefit to the respondents engaged in manufacturing Hosiery flat knitting machines.

In this case, the issue revolves around the availability of the benefit of Small Scale Industries (SSI) exemption to the respondents who are involved in the manufacture of Hosiery flat knitting machines. The Revenue sought to deny this benefit on the grounds that the respondents had used the brand name "Elex" belonging to another entity during a specific period. However, the Commissioner (Appeals) did not accept this argument and granted the SSI exemption to the respondents.

Upon hearing both sides, it was established that the respondent is a proprietorship concern established by Shri Gurdev Singh in 1981. The department's claim that the firm used the brand name "Elex" of another entity was not substantiated with concrete evidence. The only evidence presented was the testimony of Shri Gurdev Singh, which was retracted and not supported by any corroborative evidence from the Revenue. Furthermore, certificates from buyers of the knitting machines confirmed that they did not purchase machines with the brand name "Elex" from the respondent. This lack of substantial evidence led the Commissioner (Appeals) to rightfully grant the SSI exemption to the respondent, as per the precedent set by the Tribunal in a similar case involving the brand name "Elex."

Based on the above analysis, it was concluded that the impugned order was legal, and the decision to grant the benefit of SSI exemption to the respondent was upheld. The Tribunal found no fault in the Commissioner (Appeals)'s decision and dismissed the Revenue's appeal, thereby affirming the availability of the SSI exemption benefit to the respondents engaged in manufacturing Hosiery flat knitting machines.