2009 (10) TMI 808 - AT - Central Excise

SSI exemption - use of brand name of others - Held that - once the registration of the trade mark under the said Act is granted, it takes effect from the date of making of the application for the registration. The certificate of registration issued to the appellants clearly discloses that the application was filed on 1-5-1992. In fact, the certificate itself reads that the appellants have been registered under the Act in relation to the trade mark for telephone (basic and cordless) as of the date of 1-5-1992. Obviously, therefore, the authorities below erred in denying the benefit under the said notification w.e.f. 1-5-1992 to the appellants and order in that regard cannot be sustained. The appellants are entitled for benefit under the N/N. 175/86-C.E. dated 1-3-1986 and 1/93-C.E., dated 28-2-1993 w.e.f. 1-5-1992 onwards - appeal allowed - decided partly in favor of appellant.

Summary

Issues:
- Denial of small scale exemption notifications to the appellants based on brand name usage.
- Interpretation of Trade Marks Act, 1999 regarding the effective date of registration.

Analysis:
1. Denial of Small Scale Exemption Notifications:
The appellants, engaged in manufacturing telephones, applied for registration of the brand name "WESTON" in 1992, which was granted in 2000. A show cause notice alleged misuse of exemption notifications due to brand name ownership. The Assistant Commissioner denied small scale exemption benefits, upheld by the Commissioner (Appeals). The appeal challenged this denial, arguing that registration under the Trade Marks Act, 1999, effective from the application date, should allow benefits from 1992. The authorities based their decision on the registration date, ignoring the law's provisions.

2. Interpretation of Trade Marks Act, 1999:
The Trade Marks Act, 1999, Section 23(1) states that registration takes effect from the application date unless opposed. The appellants' registration application was dated 1-5-1992, and the certificate confirmed registration from that date for the telephone brand name. The authorities erred in denying benefits from 1992 based on the later registration date. The judgment held that the appellants were entitled to small scale exemption benefits from 1-5-1992 onwards, as per Notification Nos. 175/86-C.E. dated 1-3-1986 and 1/93-C.E., dated 28-2-1993. The appeal partly succeeded, granting relief to the appellants in line with the Trade Marks Act interpretation.

This judgment clarifies the importance of adherence to legal provisions, specifically regarding the effective date of registration under the Trade Marks Act, 1999, in determining eligibility for tax benefits and exemptions.