2008 (4) TMI 596 - AT - Central Excise

Summary

Issues: Stay applications filed by three parties against duty demands, penalties, and brand name ownership in garment manufacturing equipment cases.

Analysis:
1. The first issue involves the stay application filed by M/s. Sunfab against a duty demand, equivalent penalty, and Rule 25 penalty. The contention is that the brand name "SUNRISE" is a general name used by various companies, and the show cause notice was delayed post the search date. The appellant argues that the brand name was not owned by any party until registered by M/s. Sunrise Services. The appellant offers to pre-deposit a sum to contest the case, and Rule 25 of CE Rules is deemed inapplicable for penalties.

2. The second issue pertains to M/s. Alba Equipments' stay application against duty demand and penalties confirmed by the Commissioner (Appeals). The argument revolves around the ownership of the brand name "SUNRISE" and the contention that M/s. Sunrise Services owned the trademark only after registration. The appellant offers to pre-deposit a certain amount, claiming SSI exemption and challenging the applicability of Rule 25 of CE Rules for penalties.

3. The third issue involves M/s. Sunrise Services' stay applications against penalties imposed under Rule 26 for allowing the use of the brand name "SUNRISE" by other parties. The appellant denies collusion in clearance of goods without duty payment and emphasizes a strong prima facie case. Both counsels rely on various judgments and circulars to support their arguments.

4. The final issue addresses the arguments presented by the Revenue in favor of penalties and duty recovery. The Revenue contends that the brand name "SUNRISE" was used as a trademark to identify goods, and statements indicate its use by other parties. The Revenue relies on a Supreme Court judgment to support its position and argues against financial hardship pleas for pre-deposit amounts.

5. The judgment considers the submissions and acknowledges the plea that demands post the search date cannot be alleged as suppression. It notes the non-registration of the "SUNRISE" symbol during the relevant period and the lack of ownership by any party. The judgment accepts the pre-deposit offers by M/s. Sunfab and M/s. Alba Equipments, waiving the balance of duty and penalties. The stay applications for penalties by M/s. Sunrise Services are allowed, with a warning of appeal dismissal for non-compliance. The appeals are scheduled for expedited hearing post compliance reporting.