2006 (1) TMI 298 - AT - Central Excise

Summary

Issues:
1. Duty demand for goods cleared using a registered brand name.
2. Imposition of penalties under Section 11AC and Rule 173Q.
3. Challenge to the impugned order regarding brand name ownership.

Analysis:
1. The case involved the Revenue proceeding against the appellants for clearing goods using the brand name 'TIP TOP,' registered in another person's name. A duty amounting to Rs. 3,18,469/- was demanded, along with penalties under Section 11AC and Rule 173Q. The appellants strongly challenged the impugned order, claiming to be the first owner of the trademark 'TIP TOP' since 1980, despite it being registered in another's name later.

2. The Advocate for the appellants argued that the first user of a trademark is entitled to use it commercially, citing legal precedents supporting their claim. They presented evidence of using the brand name 'TIP TOP' since 1980 through a partnership deed. Additionally, they referenced a previous order by the Commissioner of Central Excise (Appeals) that stated the person in whose name the brand was registered did not own it, further strengthening their case.

3. On the other hand, the Revenue contended that there was no proof of the appellants owning the brand name 'TIP TOP' since 1980. They questioned the validity of relying on the Commissioner's order from a different region, suggesting a possible appeal by the Revenue against it.

4. The Tribunal considered both arguments and found in favor of the appellants. They accepted the evidence presented, including the partnership deed from 1980, and the Commissioner's finding that the registered owner no longer owned the brand name. The Tribunal held that the appellants were entitled to the SSI benefit as the registered owner did not own the brand name during the period in question, rendering the impugned order baseless. Consequently, the appeal was allowed with consequential relief.

This detailed analysis highlights the key legal arguments, evidentiary support, and the Tribunal's rationale in arriving at the decision regarding the ownership of the brand name 'TIP TOP' and the associated duty demand and penalties.