1990 (11) TMI 268 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 175/86-C.E. and its subsequent amendment under Notification No. 223/87-C.E. regarding exemption availed by manufacturers of T.V. Cabinets based on the brand name affixed to the cabinets.

Analysis:
The Appeals filed by the Revenue against the orders of the Collector of Central Excise (Appeals), Calcutta, regarding the exemption availed under Notification No. 175/86-C.E. by T.V. Cabinet manufacturers were taken up for a common decision. The main contention was whether the brand name affixed to the T.V. Cabinets made them ineligible for the exemption accorded to small-scale units under the said Notification.

The Appellant argued that the brand name affixed to the T.V. Cabinets established a connection between the cabinets and the T.V. sets bearing the brand name, making them specified goods falling under Chapter Heading 85.29. The Appellant relied on case law to support the interpretation of the term "brand name" and emphasized that manufacturers affixing the brand names of T.V. sets were not entitled to the exemption.

On the other hand, the Respondents reiterated the findings of the Collector of Central Excise (Appeals) and highlighted that the brand name was affixed to the cabinets, not the T.V. sets. They relied on a clarification issued by the Central Board of Excise & Customs to support their argument.

The Tribunal analyzed the amendments introduced by Notification No. 223/87-C.E., which specified that the exemption under Notification No. 175/86-C.E. would not apply if a manufacturer affixed specified goods with a brand name of another person not eligible for the exemption. The Explanation-VIII clarified that a brand name indicates a connection between the goods and the person using the name, making them specified goods. The Tribunal concluded that the T.V. Cabinets with brand names of T.V. sets manufacturers were not eligible for the exemption, setting aside the orders of the Collector (Appeals) and allowing the Revenue's appeals.

In conclusion, the judgment clarified the interpretation of the term "brand name" under the relevant Notifications, emphasizing the connection between specified goods and the person using the brand name. The decision highlighted that affixing brand names to T.V. Cabinets made them ineligible for the exemption, based on the specific provisions and explanations provided in the Notifications.