2006 (1) TMI 367 - AT - Central Excise

Summary

Issues:
- Interpretation of small scale exemption Notification No. 88/88-C.E.
- Ownership of brand name "shaving plus" by M/s. Prakash Gramodyog Ltd.
- Entitlement to benefit of Notification No. 88/88-C.E.
- Time-barred demand for the period prior to 6-10-97.
- Effect of registration of trade mark under Trade Marks Act, 1999.
- Application of SSI notification for goods cleared under the same trade mark.

Analysis:
1. Interpretation of small scale exemption Notification: The case involved the denial of benefit of small scale exemption Notification No. 88/88-C.E. to the appellant due to ownership disputes over the brand name "shaving plus." The Tribunal confirmed the demand based on the brand name not belonging to M/s. Prakash Gramodyog Ltd. The matter was remanded by the Supreme Court to decide the issue of limitation and ownership of the brand/trade name for a specific period.

2. Ownership of brand name: The appellant contended that the trade name "shaving plus" was registered in their name under the Trade Marks Act from 6-10-97. They produced a certificate of registration to support their claim of ownership. The Tribunal considered the registration date and ownership of the brand name crucial in determining entitlement to the small scale exemption.

3. Entitlement to benefit of Notification No. 88/88-C.E.: The Tribunal's decision hinged on whether M/s. Prakash Gramodyog Ltd. was the rightful owner of the brand name "shaving plus." The registration of the trade mark in their name was a pivotal factor in establishing their entitlement to the benefits under Notification No. 88/88-C.E. for clearing goods under their own brand name.

4. Time-barred demand for the period prior to 6-10-97: The appellant argued that the demand for the period prior to 6-10-97 was time-barred as they were not clearing goods with the intent to evade duty. The Tribunal considered the historical context of the ownership dispute over the brand name and relevant legal precedents to determine the applicability of the small scale exemption.

5. Effect of registration of trade mark: The registration of the trade mark "shaving plus" in the name of M/s. Prakash Gramodyog Ltd. under the Trade Marks Act was a significant development in establishing their ownership rights. The Tribunal relied on the provisions of the Trade Marks Act to ascertain the validity and implications of the registration on the appellant's claim for the small scale exemption.

6. Application of SSI notification for goods cleared under the same trade mark: The Tribunal referred to previous legal interpretations regarding the use of the same trade mark for different goods. The decision highlighted the distinction between the brand name and the goods manufactured under it, emphasizing the entitlement to the small scale exemption based on the ownership of the brand name and the goods cleared under it.

In conclusion, the judgment resolved the ownership dispute over the brand name "shaving plus" in favor of M/s. Prakash Gramodyog Ltd. based on the registration under the Trade Marks Act. The decision upheld their entitlement to the benefits of Notification No. 88/88-C.E. for clearing goods under their own brand name, setting aside the time-barred demand for the period prior to 6-10-97.