2009 (9) TMI 701 - AT - Central Excise

SSI Exemption - Brand name - Held that - Both the respondents can only be said to have used their own brandnames one of them having used their own registered brandname and the other having used a brandname assigned to them - demand set aside - appeal dismissed - decided against Revenue.

Summary

Issues:
- Appeal against the dropping of demand of duty by lower appellate authority.
- Eligibility for SSI benefit under Notifications No. 140/83-C.E. and No. 10/99-C.E.
- Use of brandnames 'Asoka - S' and 'Asoka - C'.
- Ownership and registration of brandnames.
- Interpretation of bar against claiming SSI benefit under specific brandnames.
- Applicability of case laws in similar matters.
- Merits of Revenue's appeals.

Analysis:
1. The judgment deals with two appeals filed by the Revenue against the dropping of demand of duty by the lower appellate authority. The demands were related to the denial of SSI benefit under Notifications No. 140/83-C.E. and No. 10/99-C.E. for the period from 1997-98 to 1999-2000. The Revenue contended that the brandnames 'Asoka - S' and 'Asoka - C' used by the respondents did not belong to them, making them ineligible for the SSI benefit.

2. The Revenue argued that the brandnames were not registered in the name of the respondents and were used beyond the territories assigned under an agreement. However, the respondents presented evidence that the brandname 'Asoka' was registered in the name of another individual, and one of the respondents had the right to use the brandname through an Assignment Deed. The counsel for the respondents also cited a Supreme Court judgment where a party was allowed to claim SSI benefit for using an assigned trademark.

3. The Tribunal carefully considered the submissions and found no merit in the Revenue's appeals. It was established that both respondents were using their own brandnames, one through registration and the other through a valid assignment. The case law cited by the respondents' counsel supported the appellate Commissioner's order, emphasizing that the respondents were not using another person's brandname, thus making them eligible for the SSI benefit.

4. The Tribunal distinguished the current issue from previous judgments related to SSI exemption schemes and concluded that the Revenue's appeals lacked substance. Therefore, the impugned order was upheld, and the appeals were dismissed. The judgment highlights the importance of ownership and valid use of brandnames in determining eligibility for tax benefits under specific notifications.