2005 (3) TMI 661 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of duty under Notification 175/86 - Eligibility for SSI exemption Notification due to use of brand name of another person.

In this case, M/s British (I) Catalyst Pvt. Ltd. filed an application for the waiver of pre-deposit of duty amounting to Rs. 5,86,036 demanded from them for clearing goods named Diesel Exhaust Purifiers under the brand name 'Honey Cat' of a foreign company. The appellant argued that they owned the brand name as it was assigned to them exclusively for use in India, and they stopped affixing the brand name on the goods after a certain period. However, the respondent contended that as per a recent Supreme Court decision, using another person's brand name would disqualify them from the benefit of the Small Scale Industry (SSI) exemption Notification.

Upon considering the arguments, the Tribunal noted that until a certain date, the appellants were indeed affixing the brand name of the foreign company on the goods, and later, the brand name was only on the packaging. The Tribunal found that the assignment of ownership did not automatically make them eligible for the Notification benefit since the foreign company could revoke the assignment. Therefore, the appellants did not establish a strong case for a complete waiver of pre-deposit. The Tribunal acknowledged the financial hardship claimed by the appellants, who reported a loss of Rs. 3,60,000 as of a specific date. Consequently, the Tribunal directed the appellants to pre-deposit Rs. 60,000 within six weeks. Upon compliance, the pre-deposit of the remaining duty and the penalty would be waived, and the recovery stayed during the appeal process, with a compliance report due on a specified date.