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Issues: Denial of SSI benefit based on the use of logos and marks belonging to other persons, penalties imposed on the proprietor and managing director, duty demands after denial of SSI benefit, eligibility to SSI units exemption, penalties imposed on the case.
In this judgment by the Appellate Tribunal, the issues revolve around the denial of Small Scale Industries (SSI) benefit to M/s. Viraj Associates due to their use of logos and marks belonging to other entities. The tribunal found that the initials 'DVK' and the mark 'Popular' were being used on the goods by Viraj Associates, but there was no evidence to show that these marks were used by the alleged other persons. It was concluded that these markings were made to indicate the goods supplied to a particular customer and not for trade purposes. However, the mark 'Hansu' was recognized as the brand/trade name of M/s. Hansu Controls Ltd. The tribunal referred to legal precedents and circulars to determine that the denial of SSI notification on goods bearing the 'DVK' and 'Popular' markings would not disqualify Viraj Associates from SSI benefits. Regarding the mark 'Hansu', the tribunal acknowledged a case for denial of SSI benefit, which would reduce the duty demands to an agreed amount. The judgment also addressed the penalties imposed on the proprietor and managing director of Viraj Associates. It was noted that the issue of eligibility for SSI units exemption based on the use of another person's marks was a complex legal matter, recently settled by the Apex Court. Consequently, the tribunal decided to set aside the penalties imposed in this case. Ultimately, the penalties were revoked, and the duty demand of Rs. 1,15,409/- was confirmed, leading to the disposal of the appeals.
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