2016 (5) TMI 1279 - AT - Central Excise

SSI exemption Notification No. 8/2003-CE dated 01.03.2003 - entitlement - use of brand name SAGAR of another person - Held that - by relying on the decision of this Tribunal in the case of Novel Tronic Corporation 2008 (8) TMI 710 - CESTAT CHENNAI the appellant is the owner of brand name SAGAR as the appellant was using the said brand name prior to M/s Sagar Machine Tools Pvt. Ltd (another person). Therefore the appellant is entitled to avail benefit of exemption Notification No. 8/2003-CE dated 01.03.2003 as the appellant has using the brand name prior to the registered owner of the brand name and the brand name is a common brand. - Decided in favour of appellant with consequential relief

Summary

Issues:
- Appeal against demand of duty, interest, and penalty under Notification No. 8/2003-CE dated 01.03.2003
- Dispute over the use of brand name 'SAGAR' by the appellant
- Entitlement of the appellant for exemption under Notification No. 8/2003-CE dated 01.03.2003 based on brand name usage

Analysis:
1. The appellant contested the demand of duty, interest, and penalty under Notification No. 8/2003-CE dated 01.03.2003, claiming they were entitled to SSI exemption. The dispute arose from the alleged misuse of the brand name 'SAGAR,' registered under a different entity, leading to the denial of exemption.

2. The appellant argued that they had been using the 'SAGAR' brand name since before the registration by the other entity, asserting their entitlement to the exemption. They presented evidence of historical brand usage and dissolution of a partnership firm, emphasizing their prior and continuous use of the brand name.

3. The respondent contended that the brand name had been in use by their company since its inception, denying permission for its use by others. This conflicting claim raised questions about the rightful ownership and usage of the brand name 'SAGAR.'

4. Upon reviewing the facts and submissions, the tribunal acknowledged the appellant's longstanding use of the 'SAGAR' brand name, predating the registration by the other entity. The tribunal noted the commonality of the brand name's registration among various parties, establishing it as a shared brand rather than exclusive to a single entity.

5. Citing precedent from the case of Novel Tronics Corporation, the tribunal ruled in favor of the appellant, recognizing their ownership of the 'SAGAR' brand name and validating their claim for exemption under Notification No. 8/2003-CE dated 01.03.2003. The tribunal overturned the impugned order, granting relief to the appellant.

6. The judgment highlighted the importance of establishing prior usage and common ownership of brand names in determining eligibility for exemptions under relevant notifications. The decision emphasized the need to consider historical usage and registration patterns to ascertain rightful ownership and entitlement to statutory benefits.