2006 (8) TMI 424 - AT - Central Excise

Summary

Issues: Classification of goods based on marks printed on containers, duty liability for goods cleared for export, interpretation of marks as trademarks or house marks.

The judgment by the Appellate Tribunal CESTAT, Chennai pertains to appeals against orders of the Commissioner (Appeals) regarding the classification of pharmacopoeial medicines as dutiable or non-dutiable based on the marks printed on their containers. The original authority classified the goods under sub-heading 3003.10 as perceiving the marks as trademarks/brand names, while the first appellate authority considered them house marks under sub-heading 3003.20, leading to a duty dispute. The appellants cleared both exempted goods for export and dutiable goods for the domestic market, resulting in a duty liability of 8% on the price of the exempted goods under Rule 57CC of the Central Excise Rules, 1944.

Regarding representation for the appellants, despite notice, none was present during the proceedings. The Bench, after examining the records and hearing the learned SDR, observed that the marks like 'BROWN & BURK' were part of the manufacturer's name and not registered as trademarks or brand names. The SDR argued that other marks like 'ELBE', 'LUEX', 'PREMIER HEALTH CARE', 'MORNING SIDE', etc., were not brand names but rather buyer's names or abbreviations, citing a Supreme Court judgment in a similar matter. The Tribunal concurred with the SDR's submissions, noting that none of the marks were registered trademarks or brand names, whether considered house marks or not. Therefore, the orders of the appellate Commissioner exempting the goods from duty payment and holding the appellants liable under Rule 57CC were upheld, resulting in the dismissal of the appeals.