2018 (9) TMI 486 - AT - Central Excise

SSI Exemption - use of Brand Name of others - Department alleged that the brand Rastogi belongs to some other firm - Held that - The appeal of M/s. Steel Craft has already been decided by this Tribunal in M/S STEEL CRAFT VERSUS CCE, JAIPUR 2018 (5) TMI 1410 - CESTAT NEW DELHI wherein the appeal filed by manufacturer-assessee namely, M/s. Steel Craft has been allowed by this Tribunal, and Order-in-Appeal confirming the duty amount has been set aside - Demand with penalty set aside - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Entitlement to SSI benefit under Notification No. 8/2003
2. Allegation of brand ownership affecting SSI benefit
3. Imposition of Central Excise duty and penalties
4. Appeal against penalties on partners under Rule 26 of Central Excise Rules, 2002

Entitlement to SSI Benefit under Notification No. 8/2003:
The case involved M/s. Steel Craft, engaged in manufacturing steel furniture under the brand name 'Rastogi', claiming SSI benefit under Notification No. 8/2003. The dispute arose when the department alleged that the brand 'Rastogi' belonged to another firm, challenging the manufacturer's entitlement to the SSI benefit. The matter was adjudicated, resulting in the confirmation of Central Excise duty along with penalties. The Commissioner (Appeals) upheld the duty amounts but did not confirm the penalties on the partners.

Allegation of Brand Ownership Affecting SSI Benefit:
The central issue revolved around the ownership of the brand 'Rastogi' and its impact on the manufacturer's eligibility for the SSI benefit. The department sought penalties under Rule 26 of Central Excise Rules, 2002 against the partners of M/s. Steel Craft, Shri Mahesh Rastogi and Smt. Kamla Rastogi, for allegedly not meeting the SSI criteria due to brand ownership disputes.

Imposition of Central Excise Duty and Penalties:
The Tribunal had previously allowed the appeal of M/s. Steel Craft, setting aside the Order-in-Appeal confirming the duty amount. As a result, since the duty demand was overturned by the Tribunal, the department's appeal seeking penalties on the partners of the manufacturer was deemed meritless. Consequently, both appeals filed by the department were rejected, upholding the decision of the Tribunal in favor of the manufacturer.

Appeal Against Penalties on Partners under Rule 26 of Central Excise Rules, 2002:
The final judgment focused on the rejection of the department's appeal seeking the imposition of penalties on the partners of M/s. Steel Craft under Rule 26 of Central Excise Rules, 2002. This decision was based on the Tribunal's previous ruling that set aside the duty demand, rendering the penalties unwarranted in light of the overturned duty assessment.

In conclusion, the judgment addressed the complex issues of SSI benefit entitlement, brand ownership disputes, duty imposition, and penalties under Central Excise Rules, ultimately resulting in the rejection of the department's appeals against the partners of the manufacturer.