2019 (2) TMI 1415 - AT - Central Excise

SSI Exemption - use of same brand name by different firm of Family members - N/N. 8/2003-CE dated 01.03.2003 - Held that - The brand name Vivek , the same was belonging to a family and members of the family for using the said brand and all were claiming as their own brand. Though there were some dispute among the family members regarding ownership of Vivek brand but later on in a Civil suit they filed the consent that all are eligible to use the brand and there will be no objection in using the said brand by all the assessees. All the assessees become owner of Vivek brand, accordingly it cannot be said that any of the assessees against when demand was confirmed is using the brand name of another person. In the facts all the assessees are owner of Vivek brand. Therefore, all are eligible for SSI exemption Notification No. 8/2003-CE - appeal allowed - decided in favor of assessee.

Summary

Issues involved: Eligibility for SSI Exemption Notification No.8/2003-CE for different family firms using the same brand name "Vivek."

Analysis:
The case revolved around determining whether different family firms utilizing the brand name "Vivek" were entitled to the SSI Exemption Notification No.8/2003-CE. The counsel for the assessees argued that all firms were owners of the "Vivek" brand, despite initial ownership disputes, as a civil suit resulted in consent for all firms to use the brand. Subsequently, the brand was registered in the names of all assessees, establishing their collective ownership. Citing a previous decision, the counsel contended that when a trademark is used by various family members, it cannot be claimed that the brand belongs to a single individual. The Tribunal noted that all assessees had the "Vivek" brand registered in their names with the Trade Mark Registry, confirming their eligibility for the SSI Exemption Notification. Consequently, the Tribunal ruled in favor of the assessees, allowing their appeals.

Regarding the Revenue's appeal, which sought to include the value of goods claimed as exports by the assessees in the aggregate clearances for computing the SSI limit, the Tribunal found that since the assessees were eligible for the SSI Exemption on merit, the goods claimed as exports were also eligible for the exemption. Additionally, the Revenue's appeal involved an amount less than ?20 Lakhs, leading to its dismissal based on the government's litigation policy outlined in a circular dated 11.07.2018. Therefore, the Tribunal allowed the assessees' appeals and dismissed the Revenue's appeals, emphasizing the collective ownership of the "Vivek" brand by all family members as the key factor in determining eligibility for the SSI Exemption Notification.