2006 (4) TMI 3 - SC - Central Excise

Central Excise Brand name Foreign owner assigned to respondents - Trade mark registry registered in respondent s name in India Disallow exemption

Summary

Issues:
1. Interpretation of Notification No. 140/83-C.E regarding exemption eligibility.
2. Validity of trade mark registration and its impact on exemption entitlement.
3. Preclusion of Revenue from taking a different stand due to finality of earlier decision.

Detailed Analysis:

1. The case involved appeals under Section 35L(b) of the Central Excise Act, 1944 against a Tribunal order granting exemption under Notification No. 140/83-C.E to the assessee for 'Bigen Liquid Hair Colour'. The Tribunal allowed the assessee's appeal and dismissed the Revenue's appeal.

2. The assessee claimed SSI exemption under Notification No. 140/83-C.E for manufacturing 'Bigen Liquid Hair Colour' under the brand name "BIGEN" assigned to them by a Japanese firm. The Trade Mark Registry recognized the assessee as the sole proprietor of the trade mark "Bigen" for India, leading to entitlement to the exemption.

3. The adjudicating authority confirmed the demand for duty against the assessee, which was upheld by the Commissioner. The Tribunal, however, ruled in favor of the assessee, emphasizing the validity of the trade mark registration and the finality of the earlier decision between the parties. The Revenue's failure to challenge the earlier decision precluded them from taking a different stand in the present appeals.

4. The Tribunal highlighted that once the trade mark was registered in the name of the assessee by the statutory authority, denying the benefit of the notification was erroneous. The Tribunal also cited legal precedents to support the principle that finality of decisions prevents parties from changing their stance in subsequent appeals.

5. Ultimately, the Supreme Court found no infirmity in the Tribunal's order and dismissed the appeals, holding that the parties should bear their own costs. The judgment reinforced the importance of upholding the validity of trade mark registrations and respecting the finality of earlier decisions in legal proceedings.

This detailed analysis provides a comprehensive overview of the legal judgment, addressing the key issues and the reasoning behind the Supreme Court's decision.