2017 (3) TMI 1913 - AT - Central Excise

SSI Exemption - denial of benefit on the ground that the brand names used by name of others - Department after the show cause notice observed that the brand names were registered under the name of Shri Sanjeev Bhardwaj, so the assessee-Appellants cannot use the brand name and denied the benefit of SSI exemption. HELD THAT - From the record it appears that the assessee-Appellants proprietary concern was converted into the Private Limited Company and for that purpose all necessary documents were submitted before the Commissioner in reply to the show cause notice. When it is so, it is deemed fit to set aside the impugned order and remand all the appeals to the original authority for de novo adjudication but by providing a reasonable opportunity to the assessee-Appellants to present their case with liberty to file additional documents, if any, as per law. Appeal allowed by way of remand.

Summary

Issues Involved:
Appeal against Order-in-Original denying SSI exemption benefit due to brand name registration in individual's name for a Private Limited Company.

Analysis:
The judgment involves appeals filed against Order-in-Original No. 07/2012-13 dated 30.11.2012 passed by the Commissioner of Central Excise, Delhi for the period 2006-07 to 2010-11. The case revolved around the conversion of a proprietary concern into a Private Limited Company owned by two Directors. A search conducted by the Department revealed that brand names were registered under the individual's name, leading to the denial of SSI exemption benefit. The appellants contested this decision.

During the proceedings, the counsel for the appellants argued that the Commissioner did not provide an opportunity to defend the case properly, as some inquiries were conducted without their knowledge. On the other hand, the Department justified the decision based on the individual registration of the brand name. The Tribunal referred to the case of Anil Pumps (P) Ltd. vs CCE, Panchkula, where it was held that if the brand name is registered in an individual's name and used by the Company where the individual is a Director, the benefit of SSI exemption cannot be denied.

This principle was upheld by the Supreme Court in Commissioner vs Anil Pumps (P) Ltd. and reiterated by the Tribunal in another case. Considering that all necessary documents were submitted during the conversion of the proprietary concern into a Private Limited Company, the Tribunal set aside the impugned order and remanded the appeals to the original authority for fresh adjudication. The appellants were granted a reasonable opportunity to present their case and submit additional documents if required.

In conclusion, all the appeals of the assessee-Appellants were allowed by way of remand, emphasizing the importance of providing a fair opportunity for the parties to present their case in matters concerning brand name registrations and SSI exemption benefits.