2019 (6) TMI 556 - AT - Central Excise

SSI Exemption - use of brad name - Exemption to Jute Bags - N/N. 30/2004-CE dated 09.07.2004 - period of dispute is from 01.03.2007 to 20.02.2013 - HELD THAT - Hon ble Supreme Court in the case of RDB Textiles Ltd. Vs. CCEx. S.Tax, Kol.IV 2018 (2) TMI 825 - SUPREME COURT had examined the wordings of the Notification as it stood during the disputed period and decided that the printing of the name, logo and other particulars of buyer, like, FCI and State Governments, were made by the manufacturers to comply with the requirements of Jute Control Order. The Hon ble Supreme Court further held that the markings on jute bags were under compulsion of law and meant for identification, monitoring and control by Government Agencies and such markings cannot be considered as brand name. Exemption cannot be denied - appeal allowed - decided in favor of appellant.

Summary

Issues:
Dispute over Central Excise Notification No.30/2004-CE exemption for jute bags bearing brand names.

Analysis:
The case involved multiple appeals by jute bag manufacturers claiming exemption under Central Excise Notification No.30/2004-CE. The dispute arose due to an amendment restricting the exemption to goods not bearing brand names. The appellants printed buyer information on jute bags as required by the Jute Commissioner, including names like Food Corporation of India. Authorities contended these bags bore brand names, denying exemption and imposing duty, interest, and penalties. The Hon'ble Supreme Court in RDB Textiles Ltd. Vs. CCEx. & S.Tax, Kol.IV clarified that markings for identification, monitoring, and control by government agencies did not constitute brand names. The Court emphasized that such markings were compulsory under the Jute Control Order, not for enhancing value or indicating a trade connection. Accordingly, the Court held that the appellants were entitled to the benefit of the exemption.

The appellants' counsels and Departmental Representatives agreed that the Supreme Court's decision in RDB Textiles Ltd. case was applicable to the present appeals. The Supreme Court's analysis highlighted that the compulsory markings on jute bags were not indicative of a trade connection or meant for enhancing value. Therefore, the Court allowed all the appeals based on the Apex Court's ruling, granting the appellants the benefit of the Central Excise Notification No.30/2004-CE exemption.