2005 (1) TMI 182 - AT - Central Excise

Summary

Issues: Revenue challenging validity of SSI exemption granted, Affixation of monogram on goods, Interpretation of SSI exemption notification.

In this appeal, the Revenue challenged the validity of the Order-in-original granting SSI exemption to the respondents under Notification No. 175/86-C.E. The Revenue contended that the respondents used another person's monogram on their goods, rolling mill rolls, thereby disqualifying them from the exemption. The learned Commissioner rejected this argument, stating that the goods were not capable of affixing any brand name or monogram. The Revenue claimed that placing monogram-bearing packing slips in the boxes during clearance constituted affixation of the monogram on the goods, citing para 7 of the SSI exemption Notification. The respondents argued that this act did not amount to affixation of another person's monogram. They referenced judgments in support of their stance, emphasizing that mere mention in invoices did not violate the exemption conditions.

Upon review, it was found that the goods in question, rolling mill rolls, were not embossed with another person's monogram as alleged by the Revenue. The Executive Director of the respondents confirmed the intention to do so but cited technical limitations. The Commissioner observed that the goods were not suitable for embossing a trade name or monogram. Merely placing packing slips with a monogram in the boxes did not constitute affixation of the monogram on the goods. The Tribunal differentiated this case from precedents where brand names were affixed on containers or mentioned in invoices, ruling that such actions did not breach the exemption conditions. Consequently, the impugned order granting SSI exemption to the respondents was upheld, dismissing the Revenue's appeal and disposing of the respondents' cross objections accordingly.