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2018 (12) TMI 494 - AT - Central ExciseSSI Exemption - use of Brand Name of other person - the appellant has used the brand name which is also used by the family members of the appellant - Held that - The same brand name is used by authorized family members for conducting their respective business. Identical set of facts is decided in the case of Laxmi Industries vs. CCE, Rajkot 2013 (11) TMI 1418 - CESTAT AHMEDABAD , where it was held that SSI exemption is eligible to the firm wherein the partners are belonging to a same family. The appellant is using brand name which is also used by other family members cannot be said that the appellant is using the brand name of other persons - benefit of SSI Exemption is to be allowed - appeal allowed - decided in favor of appellant.
Issues involved:
1. Claiming SSI exemption under Notification No. 8/2003-CE dated 01.03.2003 for manufacturing and clearing goods under brand names 'ADROL', 'TECON', and 'SCON'. 2. Allegation by the department that the brand name used by the appellant belongs to another person in their family. 3. Confirmation of duty demand and imposition of penalties. 4. Appeal against the order-in-original upholding the duty demand and penalties. Analysis: The judgment by Appellate Tribunal CESTAT Ahmedabad involved the issue of SSI exemption claimed by the appellant for manufacturing and clearing goods under specific brand names. The department alleged that the brand name used belonged to another person in the appellant's family, leading to the confirmation of duty demand and imposition of penalties. The appeal was made against the order-in-original upholding these decisions. The appellant, represented by a Chartered Accountant, argued that the brand names used were also utilized by other family members for their businesses, indicating shared ownership within the family. Citing relevant judgments, the appellant contended that the use of brand names by family members did not disqualify them from SSI exemption eligibility. The appellant relied on precedents such as CCE vs. Minimax Industries and Elex Knitting Machinery Company to support their case. On the other hand, the Revenue, represented by an Assistant Commissioner, reiterated the findings of the impugned order and relied on various judgments to support their stance that the use of a brand name belonging to another person would render the appellant ineligible for SSI exemption. After considering both sides' submissions and examining the facts, the Tribunal noted that the brand name in question was used by authorized family members for their respective businesses. Referring to the case of Laxmi Industries vs. CCE, Rajkot, the Tribunal highlighted the relevance of judgments from the Hon'ble High Courts and the Supreme Court in similar matters. The Tribunal emphasized the importance of establishing ownership of the brand name to determine SSI exemption eligibility. Ultimately, the Tribunal ruled in favor of the appellant, stating that the shared use of the brand name within the family did not imply the appellant was using another person's brand name. The Tribunal found the appellant eligible for SSI exemption based on the absence of evidence establishing ownership of the brand name by another individual. Additionally, the Tribunal addressed the time bar nature of the demand and concluded that the appellants had not suppressed information with the intention to evade duty, further supporting the allowance of the appeals filed by the appellants.
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