1992 (5) TMI 33 - HC - Central Excise

Summary

Issues involved:
The issues involved in the judgment include the exclusive right to use a registered trade mark, entitlement to exemption of Central Excise duty, and the legality of using a brand name or trade name registered by another person.

Exclusive Right to Use Registered Trade Mark:
The petitioner company, a manufacturer of mechanical power transmission equipment, claimed exclusive rights to use the registered trade mark "Vulcan" in India for its products. The petitioner was the registered proprietor of the trade mark under the Trade and Merchandise Marks Act, 1958. The Court upheld the petitioner's exclusive right to use the trade mark, emphasizing that no other person was entitled to use the trade mark in relation to the goods for which it was registered.

Entitlement to Exemption of Central Excise Duty:
The petitioner, as a Small Scale Industry (SSI) unit, had been availing the benefit of exemption of Central Excise duty under a specific notification. However, a show cause notice was issued alleging that the petitioner was not entitled to the exemption due to affixing the goods with a brand name of a foreign manufacturer. The Court found that the petitioner had not violated the conditions of the exemption notification and was entitled to the benefit as a manufacturer using its own registered brand name.

Legality of Using Brand Name of Another Person:
The show cause notice contended that the petitioner was using the brand name "Vulcan" of a foreign manufacturer, which was registered by another entity in India. The Court ruled in favor of the petitioner, stating that the petitioner had the exclusive right to use the trade mark "Vulcan" in India, as per the Trade and Merchandise Marks Act, and that the allegations of using another person's trade mark were unfounded. The Court quashed the show cause notices issued by the Central Excise Department.

The judgment highlighted the importance of upholding the exclusive rights of a registered trade mark owner and clarified that the petitioner, as the registered proprietor of the trade mark "Vulcan," was within its rights to use the trade mark for its products in India.