2005 (1) TMI 584 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of duty and penalty based on the use of brand name of foreign collaborators on documents by the manufacturer.
2. Interpretation of the Supreme Court decision in Commissioner of Central Excise Jamshedpur v. Superex Industries.
3. Analysis of the definition of brand name or trade name as per Notification No. 1/93-C.E.
4. Comparison of Notification No. 8/98 and 3/2002 with Notification No. 1/93.

Analysis:
The case involved applications for waiver of pre-deposit of duty and penalty amounting to Rs. 28,24,832 and Rs. 3 lakhs respectively, arising from the use of the brand name of foreign collaborators on documents by the manufacturer, who was engaged in manufacturing goods like Air Shaft and Air Chucks. The Commissioner of Central Excise, Navi Mumbai had confirmed the demand based on this ground.

The Tribunal considered the arguments presented by both sides and referred to the Supreme Court decision in Commissioner of Central Excise Jamshedpur v. Superex Industries. The Tribunal noted that as per the Supreme Court's decision, exemption under the SSI notification cannot be denied solely based on the use of another person's brand name on invoices if the goods themselves do not bear any brand name. The Tribunal also discussed the definition of brand name or trade name as per Notification No. 1/93-C.E., emphasizing that even the use of part of a brand name or trade name indicating a connection in the course of trade could disentitle a person from exemption.

Furthermore, the Tribunal compared the explanation IX of Notification No. 1/93 with the notifications applicable during the disputed period, i.e., Notification No. 8/98 and 3/2002. It was highlighted that the absence of a similar explanation in the latter notifications was a significant factor. The Tribunal found the decision in the case of Superex Industries to be applicable to the present case, leading to the conclusion that a strong prima facie case for waiver had been established. Consequently, the Tribunal waived the pre-deposit of duty and penalty, staying the recovery pending the appeal.

In conclusion, the Tribunal's decision was based on the interpretation of legal provisions, including Supreme Court judgments and notifications, to determine the eligibility for waiver of duty and penalty in the context of using a foreign collaborator's brand name on documents.