2009 (8) TMI 438 - AT - Central Excise

SSI Exemption- Brand name- Appellant is engaged in the manufacture of automotive clutch products falling under Chapter 87 of Central Excise Tariff Act 1985. Proceedings were initiated against the appellant for denial of benefit of small scale exemption Notification No. 8/2003-C.E. dated 1-3-2003 on the ground that they were using the brand name of their buyers M/s. Luk India Pvt. Ltd. The said brand name Luk of their buyers was being engraved embossed at the stage of casting of the said product in terms of the pattern used in the manufacture of the goods. During the course of adjudication appellants contended before the Original Adjudicating Authority that their factory is situated in the rural area and as such the bar of use of other person s brand name will not be applicable to them.

Summary

The Appellate Tribunal CESTAT, Ahmedabad, consisting of Ms. Archana Wadhwa and Shri B.S.V. Murthy, recently issued a judgement in the case involving an appellant engaged in the manufacture of automotive clutch products. The appellant was denied the benefit of a small scale exemption notification due to the use of their buyers' brand name, 'Luk'. The Original Adjudicating Authority granted the benefit to the appellant based on the rural location of their factory, which was supported by evidence from the village officer. However, the Revenue filed an appeal, arguing that the area was urban based on a notification upholding a notification from 1978. The Tribunal found that the notification was insufficient to establish the area as urban, as it referred to Odhav, not Nava Odhav. Additional evidence showed that Nava Odhav was considered rural until 2005, after which it became part of the Municipal Corporation of Ahmedabad. The Tribunal set aside the Commissioner's order and reinstated the decision in favor of the appellant.

The judgement highlights the importance of considering all relevant evidence and the specific geographical area in question when determining eligibility for tax exemptions. It also emphasizes the need for thorough analysis and consideration of all available information before making a decision. The outcome of the case underscores the significance of understanding the specific circumstances and context of each case to ensure a fair and just resolution.