2005 (9) TMI 578 - AT - Central Excise

Summary

Issues:
1. Interpretation of SSI exemption under Notification No. 1/93-C.E. for goods manufactured with parts inscribed with a brand name belonging to another person.

Analysis:
The appellate tribunal, consisting of Ms. Archana Wadhwa and Shri Moheb Ali M., JJ., heard the appeal against the order of the Commissioner (Appeals) Mumbai. The primary issue was whether the presence of the letters 'NNI' inscribed on the 'Steel Eye' and 'Steel Jaw' of the shuttles manufactured by the respondent disqualified them from the SSI exemption under Notification No. 1/93-C.E. The Commissioner had contended that these parts were purchased from M/s. New Nirmal Industries with the 'NNI' inscription, but it was established that the respondent used these parts in their shuttles. The tribunal noted that the mere presence of these inscriptions did not necessarily mean that the respondent was using a brand name belonging to another person. It was highlighted that manufacturers commonly procure parts with brand names and incorporate them into their products without infringing on any brand rights.

In the absence of concrete evidence supporting the Revenue's claim that the respondent was using a brand name belonging to another person, the tribunal found the contention to be unsubstantiated. The tribunal emphasized that the inscriptions on the parts did not automatically imply the use of another entity's brand name. Rather, it was a standard practice for manufacturers to source parts with inscriptions and integrate them into their goods under their own brand. Consequently, the tribunal rejected the appeal, affirming that the respondent was entitled to the SSI exemption under Notification No. 1/93-C.E. for the shuttles manufactured using the parts inscribed with 'NNI'. The judgment, delivered by Moheb Ali M., Member (T), concluded the matter, upholding the respondent's position and dismissing the Revenue's appeal against the Commissioner's order.