2009 (5) TMI 843 - AT - Central Excise

Summary

Issues involved: Interpretation of Notification No. 6/2002 regarding exemption for excisable goods based on brand name usage.

Summary:
The appeals were filed against Orders-in-Original by the Commissioner of Central Excise, Bangalore, regarding the use of brand names on cement bags by M/s. Madras Cement Limited. The issue revolved around whether the use of "RAMCO PRODUCT" on bags affected their eligibility for exemption u/s Notification No. 6/2002. The Commissioner held that the appellants used another's brand name, leading to demand notices and penalties. The appellants argued that "KARTHIC" was their registered brand, and "RAMCO PRODUCT" was used to reassure customers. The Commissioner's decision was based on the perceived connection between the appellants' product and Ramco Group of Industries. The appellants contended that "RAMCO" was part of their brand name and not of another entity. They also challenged the penalties imposed.

The legal position stated that using another's brand name could disqualify from exemption. The appellants used "KARTHIC" as their brand, alongside "RAMCO PRODUCT." The department claimed "Ramco" was another's brand, but the appellants asserted ownership through registration. Lack of evidence on Ramco being another's brand was noted. The Tribunal found in favor of the appellants, stating that the Commissioner's conclusion was incorrect given the evidence provided. The case was distinguished from precedent, leading to the impugned orders being set aside, and the appeals allowed with consequential relief.