2017 (10) TMI 696 - AT - Central Excise

SSI Exemption - use of Brand Name after dissolution of former entity - assignment of brand name - N/N. 8/2003 dated 01.03.2003 - Held that - originally the brand name ASOKA belonged to M/s. Vijay Chemicals & Toilet Works. Upon dissolution of M/s. Vijay Chemicals & Toilet Works, several units were started by the partners in different jurisdictions and all of them were allowed to use brand name ASOKA by addition of the suffix like A,B.C, etc. M/s. Vijay Chemicals & Toilet Works (AP) owned by Shri D.B. Nagandranath Gupta. The present appellant M/S. Vimal Perfumery Co. was assigned the brand name ASOKA-A and was allowed to use the said brand name. The Tribunal in the case of Bentex Motor Control Industries Vs. CCE 2001 (10) TMI 152 - CEGAT, COURT NO. II, NEW DELHI , held that the appellant will be entitled to use of the brand name ASOKA with the suffix A within the territory allotted to the appellant since such a brand name is used by the appellant only after proper assignment. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Claim of Central Excise duty exemption under Notification no.8/2003 for goods cleared under brand name 'Ashoka-A' with invented letter 'A'.

Analysis:
The case involved the appellant, engaged in manufacturing cosmetics, clearing goods under the brand name 'Ashoka-A' without paying Central Excise duty under Notification no.8/2003. The department alleged misuse of another person's brand name, leading to a show cause notice for duty demand, cess, interest, and penalties. The Assistant Commissioner initially dropped proceedings, but the Revenue challenged, resulting in the sustained demand, prompting the present appeal.

The appellant's counsel argued that 'Ashoka' brand was originally owned by a different entity, later divided among partners for use in different locations, including 'Ashoka-A' by the appellant. Referring to a previous Tribunal decision, the counsel contended that the use of 'Ashoka' with different suffixes had been settled, allowing the appellant's claim for exemption.

After considering submissions, the Tribunal found that 'Ashoka' brand transitioned from the dissolved entity to various units with different suffixes, including 'Ashoka-A' assigned to the appellant. Citing the Tribunal's previous rulings, the order upheld the appellant's right to use 'Ashoka-A' within the assigned territory, in line with proper assignment procedures. The decision was supported by precedents like Bentex Motor Control Industries and CCE Vs. Bonne Care Pvt. Ltd., leading to setting aside the impugned order and allowing the appeal.