2000 (4) TMI 133 - AT - Central Excise

Summary

Issues:
- Interpretation of small scale exemption notification for excisable goods bearing another person's brand name
- Ownership of brand name "Meghraj" by M/s. Kay Aar Biscuits (Pvt.) Ltd.
- Applicability of small scale exemption to goods sold under a registered trade mark
- Legal implications of brand name ownership on eligibility for exemption
- Tribunal's precedent in similar cases

Analysis:
The judgment by the Appellate Tribunal CEGAT, Court No. IV, New Delhi, involved two appeals by M/s. Meghraj Biscuits Industries Ltd. against orders passed by the Commissioner of Central Excise (Appeals), Ghaziabad. The core issue revolved around the small scale exemption notification for excisable goods sold under a brand name belonging to another entity. The dispute centered on the brand name "Meghraj," owned by M/s. Kay Aar Biscuits (Pvt.) Ltd., and its use by the appellants. The Asstt. Commissioner and the Commissioner of Central Excise (Appeals) found the appellants ineligible for the exemption due to the use of the brand name "Meghraj" not registered in their name.

The Tribunal examined the relevant notification, which stated that the exemption did not apply to goods bearing another person's brand name. The explanation clarified that a brand name includes any mark used to indicate a connection between the goods and a person. The agreement between M/s. Kay Aar Biscuits (Pvt.) Ltd. and another party confirmed the ownership of the brand name "Meghraj" by the former, emphasizing that the appellants did not possess the right to use it.

The judgment highlighted the legal principle that ownership of a brand name determines eligibility for exemption, as observed in prior cases. The Tribunal referenced precedents, such as Opus India v. CCE and Unity Paints & Chemicals Pvt. Ltd. v. CCE, to support the decision. Additionally, the Tribunal noted the relevance of the Namtech Systems Ltd. case in affirming the denial of exemption based on brand name ownership.

In conclusion, the Tribunal dismissed both appeals, emphasizing that the brand name "Meghraj" belonged to M/s. Kay Aar Biscuits (Pvt.) Ltd., rendering the appellants ineligible for the small scale exemption. The judgment underscored the significance of brand name ownership in determining exemption eligibility, aligning with established legal interpretations and precedents in similar cases.