2003 (10) TMI 98 - AT - Central Excise

Summary

Issues:
Denial of S.S.I. exemption benefit to M/s. Econoprints Stencils Pvt. Ltd. due to brand name ownership by M/s. Kores (India) Ltd.
Extended period of limitation for demanding excise duty.
Imposition of penalties on M/s. Econoprints Stencils Pvt. Ltd., M/s. Kores (India) Ltd., and Shri S.S. Bhandari.

Analysis:
The primary issue in the case was the denial of the benefit of S.S.I. exemption to M/s. Econoprints Stencils Pvt. Ltd. based on the ownership of the brand name "ECONOPRINT" by M/s. Kores (India) Ltd. The appellant argued that M/s. Kores did not renew the brand name registration after 28-7-95, thus relinquishing ownership. However, the Department contended that M/s. Kores remained the owner even if the registration lapsed. The Tribunal found that M/s. Kores continued to own the brand name, and M/s. Econoprints Stencils Pvt. Ltd. used it without authorization, leading to the denial of the S.S.I. exemption benefit.

Regarding the extended period of limitation for demanding excise duty, it was invoked due to the failure of M/s. Econoprints Stencils Pvt. Ltd. to disclose their use of another entity's brand name to the Department. The Tribunal held that this omission justified the invocation of the extended period for demanding duty, as the appellant did not act in good faith by falsely claiming entitlement to the S.S.I. exemption.

Penalties were imposed on M/s. Econoprints Stencils Pvt. Ltd., M/s. Kores (India) Ltd., and Shri S.S. Bhandari for various reasons. M/s. Econoprints Stencils Pvt. Ltd. faced a penalty for wrongly availing the exemption notification, reduced to Rs. 5 lakhs. M/s. Kores (India) Ltd. was penalized for receiving goods without duty payment, with their penalty reduced to Rs. one lakh. Shri S.S. Bhandari was penalized for misleading the Department and enabling the wrongful exemption, with his penalty reduced to Rs. 10,000. The Tribunal concluded by disposing of all three appeals in the mentioned manner, affirming the penalties and the denial of the S.S.I. exemption benefit to M/s. Econoprints Stencils Pvt. Ltd.