2000 (5) TMI 59 - AT - Central Excise

Summary

Issues involved: Interpretation of small scale exemption under Notification No. 175/86-C.E. for manufacturers affixing brand names on goods.

Summary:
1. The matter was referred to the Larger Bench to determine if small scale exemption applied when HDPE sacks were affixed with buyers' brand names. The Tribunal's decision in a similar case was cited, where affixing brand names led to denial of exemption.

2. Notification No. 175/86 prohibits exemption if goods are affixed with another person's brand name. The definition of "brand name" includes symbols or marks indicating a trade connection.

3. Board instructions clarify that brand names on certain goods do not disqualify from exemption if not used in trade. Metal labels, caps, and containers are cited as examples.

4. Circular explains conditions for brand name provisions to apply, emphasizing the trade connection and course of trade. Illustrations highlight cases where branded goods are meant for further manufacture, not direct sale.

5. Previous decisions support exemption for goods bearing buyers' brand names, emphasizing the goods are not traded but supplied for further use.

6. The Tribunal's interpretation suggests that affixing buyers' brand names on goods for their use does not disqualify from exemption under Notification No. 175/86.

7. The appeal is allowed, granting relief to the appellants based on the interpretation of the law and previous decisions.