2004 (11) TMI 171 - AT - Central Excise

Summary

Issues involved:
Classification of goods under Chapter Heading 3003.10 based on trade mark affixing.

Analysis:
The Revenue challenged the order passed by the Commissioner of Central Excise (Appeals) upholding the classification of goods under Chapter Heading 3003.10 by affixing the trade mark. The Commissioner found that the goods were rightly classified under this heading as the trade mark 'Natco' was affixed on all containers of export products, establishing a link between the products and the company. The Assistant Commissioner correctly distinguished a previous judgment related to a 'house mark' not connected to the goods. The Tribunal noted that once a trade mark is registered under the Trade and Merchandise Marks Act, goods are not classified under Chapter sub-heading 3003.20 but under 3003.10 for Patent or Proprietary Medicament bearing a brand name or registered trade mark. The Tribunal emphasized that the goods were exported under relevant rules, making them eligible for Modvat credit under Rule 57AD of the C.E. Rules, 1944.

The Revenue contended that the brand name 'Natco' did not have a direct connection with the goods manufactured, arguing for classification under sub-heading 3003.20 as medicaments other than P or P. However, the Counsel for the assessee distinguished the case from a previous judgment, emphasizing that the goods were not reflected in any relevant publications and were registered under the Trade and Merchandise Marks Act, 1958. The Counsel also highlighted the eligibility for Modvat credit under specific rules and referred to a CBEC clarification in a similar matter. The Tribunal found the Astra Pharmaceuticals case relied on by the Revenue to be distinguishable, as it did not involve goods with a registered trade mark under the mentioned Act. The Tribunal upheld the Commissioner's order, emphasizing the correct classification under 3003.10 for goods bearing a registered trade mark, making the appeal meritless and rejecting it.