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2017 (10) TMI 895 - AT - Central ExciseSSI Exemption - use of Brand name of others - case of Revenue is that it is fact on record that brand name PRIMA is owned by M/s. Rajeev Metal Industries and is registered in their name since 1975 - whether the assessees namely M/s. Rajeev Metals Pvt. Limited and M/s. Sayal Manufacturing and Trading Corporation are entitled for the benefit of SSI exemption under the notification or not on being using the brand name PRIMA-RMPL and PRIMA respectively? Held that - as per the certificate issued by the Trade Mark Registry Trade Merchandise Mark Act 1958 dated 29.11.1985 the owners of brand name PRIMA is Shri Mohinder Lal Syal Surinder Kumar Syal and Shri Hoshiar Singh Syal of Rajeev Metal Industries Ludhiana - As the Revenue has not come up with any contrary evidence that Shri M.L. Sayal is not owner of brand name therefore it cannot be said that the assessees are using the brand name of others - demand set aside. In the case of M/s. Rajeev Metals Pvt. Limited the brand name is being used is PRIMA-RMPL. The allegation of the Revenue is that PRIMA-RMPL is similar to PRIMA and therefore PRIMA-RMPL is brand name of other person. That allegation is not sustainable as trade mark authorities have recognised PRIMA-RMPL as a different brand name from PRIMA brand name and after recognising they have registered with the name of the assessee which is evident from the registration certificate - As the Revenue has not proved that assessees are not owner of brand name PRIMA-RMPL therefore it cannot be alleged that appellant is using the brand name of others - demand set aside. With regard to denial of SSI exemption in the case of M/s. Sayal Manufacturing and Trading Corporation as Shri M.L. Syal is partner of the assessee firm and owner of the said brand name as is evident from the certificate issued by the Registry of Trade Mark dated 29.11.1985 allegation of the Revenue that assessee is using brand name of another person does not stand proved and the benefit of SSI exemption cannot be denied - benefit remains allowed. Penalty on Shri M.L. Syal - Held that - Shri M.L. Syal has expired on 26.08.2016 and to that effect the death certificate has been placed on record - penalty imposed on Shri M.L. Syal stands abated. With regard to appeal filed against M/s. Rajeev Engineering Works it is fact on record that M/s. Rajeev Engineering Works has purchased goods from M/s. Rajeev Metals Pvt. Limited and M/s. Sayal Manufacturing and Trading Corporation under the brand name PRIMA and PRIMA-RMPL respectively and no contrary evidence has been produced by the Revenue to substantiate the allegation that M/s. Rajeev Engineering Works is manufacturing the goods under the brand name PRIMA/ PRIMA-RMPL - demand set aside. Appeal allowed - decided in favor of assessee.
Issues Involved:
1. Entitlement of M/s. Rajeev Metals Pvt. Limited to SSI exemption. 2. Entitlement of M/s. Sayal Manufacturing and Trading Corporation to SSI exemption. 3. Imposition of penalty on Shri Mohinder Lal Syal. 4. Revenue's appeal against the dropping of duty demand on M/s. Rajeev Engineering Works. 5. Revenue's appeal against the dropping of duty demand on M/s. Rajeev Metals Pvt. Limited. Issue-wise Detailed Analysis: 1. Entitlement of M/s. Rajeev Metals Pvt. Limited to SSI exemption: The appellant argued that the brand name "PRIMA-RMPL" used by them is different from "PRIMA," which is registered in the name of Rajeev Metal Industries. The trade mark authority recognized "PRIMA-RMPL" as a different brand name and registered it accordingly. The appellant also contended that they were filing declarations under Rule 173B of Central Excise Rules, 1944, making the extended period of limitation inapplicable. The tribunal found that "PRIMA-RMPL" and "PRIMA" are different brand names, and since the appellant's brand name was registered, they were entitled to SSI exemption. Consequently, the demand of duty along with interest and penalty imposed on M/s. Rajeev Metals Pvt. Limited was set aside. 2. Entitlement of M/s. Sayal Manufacturing and Trading Corporation to SSI exemption: The appellant argued that the brand name "PRIMA" was duly registered in their name for manufacturing specific products. The tribunal noted that Shri M.L. Syal, a partner in the firm, was an owner of the brand name "PRIMA" since 1985. Thus, it could not be said that the assessee was using the brand name of another person. Therefore, M/s. Sayal Manufacturing and Trading Corporation was entitled to SSI exemption, and the demand of duty along with interest and penalty imposed on them was set aside. 3. Imposition of penalty on Shri Mohinder Lal Syal: The appellant submitted that Shri Mohinder Lal Syal had expired on 14.08.2016, and a death certificate was placed on record. Therefore, the penalty imposed on him was quashed. Additionally, since M/s. Sayal Manufacturing and Trading Corporation was entitled to SSI exemption, no penalty was imposable on Shri Mohinder Lal Syal. 4. Revenue's appeal against the dropping of duty demand on M/s. Rajeev Engineering Works: The tribunal found that M/s. Rajeev Engineering Works was purchasing goods from M/s. Rajeev Metals Pvt. Limited and M/s. Sayal Manufacturing and Trading Corporation bearing the brand names "PRIMA" and "PRIMA-RMPL." The adjudicating authority had rightly dropped the demand, holding that M/s. Rajeev Engineering Works was engaged in the activity of trading and not manufacturing goods under the brand names "PRIMA" and "PRIMA-RMPL." The Revenue's appeal was dismissed as it lacked merit. 5. Revenue's appeal against the dropping of duty demand on M/s. Rajeev Metals Pvt. Limited: The Revenue contended that the value of clearances for the period 20.05.2003 to 31.03.2004 was not considered for duty calculation, resulting in short determination of duty. However, the tribunal noted that the adjudicating authority had dropped the demand after verifying the report from the adjudication branch, which was not disputed by the Revenue. Therefore, the appeal filed by the Revenue was dismissed. Final Order: (a) M/s. Rajeev Metals Pvt. Limited is entitled to SSI exemption; the demand of duty along with interest and penalty imposed is set aside. (b) M/s. Sayal Manufacturing and Trading Corporation is entitled to SSI exemption; the demand of duty along with interest and penalty imposed is set aside. (c) The penalty imposed on Shri M.L. Syal is not sustainable as M/s. Sayal Manufacturing and Trading Corporation is entitled to SSI exemption. Moreover, Shri M.L. Syal has expired, and therefore, no penalty is recoverable from him. (d) Appeals filed by the Revenue against M/s. Rajeev Metals Pvt. Limited and M/s. Rajeev Engineering Works are dismissed. (Order pronounced in the court on 17.10.2017)
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