2015 (10) TMI 2525 - AT - Central Excise

Eligibility to concessional rate of duty - Notification no. 8/2000 dated 1st March 2000, Notification no. 9/2001 dated 1st March 2001, Notification no. 9/2002 dated 1st March 2002 and Notification no. 9/2003 dated 1st March 2003 for the period from July 2000 to June 2003 - log used by the respondent was a trademark belonging to another person - Held that - it is clear that there is an assignment of the brand name of CMS under a deal for a fixed period. It is also clear that the products of the respondent are in no way connected to the products manufactured by the assignor of the brand name. Therefore, in view of the various settled position in law, the appellant is eligible for concessional rate of duty under various notifications. - Decided against the Revenue

Summary

Issues:
1. Eligibility for concessional rate of duty under specific notifications.
2. Ownership of brand name determining eligibility for benefits.
3. Validity of assignment of brand name for claiming benefits.
4. Interpretation of relevant case laws and Supreme Court judgments.

Eligibility for Concessional Rate of Duty:
The appeal challenged an order setting aside duty demand of &8377; 27,77,573/- against a company manufacturing 'thermoplastic road marking material' availing concessional duty rates under specific notifications from July 2000 to June 2003. The issue arose as the material was packed in plastic bags bearing a logo 'CMS,' raising questions on eligibility due to the use of a trademark belonging to another person.

Ownership of Brand Name for Benefits:
The Tribunal referred to a decision stating that products bearing a brand name of another person, even with consent or assignment, are ineligible for exemption benefits. The Supreme Court upheld this decision, emphasizing that the exclusive ownership of the brand name is crucial for determining eligibility for notifications granting concessions.

Validity of Assignment of Brand Name:
The Tribunal noted that the brand name 'CMS' was assigned to the respondent by M/s CMS Computers Ltd. for five years, as per a valid assignment deed. Relying on previous judgments, it was established that when a brand name is assigned and owned by the assessee for their product, SSI exemption is rightfully available, especially when the assignor uses the same trade name for a different product. The Tribunal differentiated this case from others where brand name usage for similar products rendered the assessee ineligible for concessional duty rates.

Interpretation of Case Laws and Supreme Court Judgments:
The Tribunal dismissed the Revenue's appeal based on the settled legal position that ownership of the brand name is pivotal in determining eligibility for duty concessions. The judgments cited were analyzed to show that the assignment of the 'CMS' brand name for a fixed period to the respondent did not disqualify them from availing the benefits under the notifications. The Tribunal clarified that the products of the respondent were unrelated to those of the assignor, reinforcing the validity of the brand name assignment for claiming benefits.

In conclusion, the appeal was dismissed, affirming the respondent's eligibility for concessional duty rates based on the ownership and valid assignment of the brand name 'CMS' as per established legal principles and precedents.