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2004 (12) TMI 156 - AT - Central Excise
Issues involved:
1. Whether the Respondents were removing excisable goods bearing a brand name belonging to another entity. Analysis: The appeal filed by the Revenue questioned whether M/s. Jepika Paints were removing excisable goods with a brand name owned by M/s. Jepika Chemicals Industries. The Revenue contended that the brand name "JEPIKA" was initially registered under M/s. Jepika Chemicals Industries and later claimed to have been sold to M/s. Jepika Paints. The Revenue argued that the sale deed was executed to evade paying Central Excise duty. The Commissioner (Appeals) allowed the small scale exemption benefit, citing the sale of the brand name in January 1994 and limitations under the Trade & Merchandise Marks Act, 1958. The Respondents claimed ownership of the brand name through a sale deed dated 10-1-1994. The learned Advocate for the Respondents argued that the brand name was legitimately assigned to them through a sale deed, enabling them to benefit from small scale exemption. The Advocate cited legal precedents supporting the assignment of registered trademarks. The Tribunal noted discrepancies in the Respondent's statements regarding the brand name's ownership and the timing of the sale deed. The Tribunal observed that the brand name registration application was made after the show cause notice for confiscation of goods, indicating a lack of evidence for the sale deed in January 1994. The Tribunal concluded that the small scale exemption benefit was not applicable to M/s. Jepika Paints until 18-4-1996 due to the brand name ownership issue. The matter of eligibility for the exemption from 19-4-1996 onwards was remanded to the Adjudicating Authority. The Tribunal upheld the confiscation of goods due to branding discrepancies and reduced the redemption fine. The decision was made to address the ownership of the brand name and determine penalty imposition, leaving further considerations to the Adjudicating Authority. The appeal and cross-objection were disposed of accordingly.
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