1993 (8) TMI 160 - AT - Central Excise

Summary

Issues:
1. Interpretation of brand name ownership for exemption under Notification No. 175/86-C.E.
2. Classification of goods under the Central Excise Tariff for benefit eligibility.
3. Application of Trade and Merchandise Marks Rules in determining brand ownership.

Analysis:
1. The case involved a dispute regarding the ownership of the brand name "MITASO" used on Mixer/Grinder for availing exemption under Notification No. 175/86-C.E. The Revenue argued that the brand was registered and owned by M/s. MAL for "Electrical Household Equipment," including Mixer/Grinder, making the assessee ineligible for the exemption. The Tribunal considered the brand ownership and concluded that the brand name was indeed registered by M/s. MAL and was used on the product in question, falling under the category of "Electrical household equipment."

2. The Tribunal analyzed the classification of goods under the Central Excise Tariff to determine the eligibility for the benefit. The assessee contended that the brand name was not registered for Mixer/Grinder but for different goods. However, the Tribunal found that the Mixer/Grinder clearly fell under the category of "Electrical household equipment," as per the HSN Notes, making it eligible for the exemption. The Tribunal rejected the argument that the goods should fall under a different category specified in the Trade & Merchandise Marks Rules.

3. The application of the Trade and Merchandise Marks Rules was crucial in deciding the ownership of the brand name for the goods in question. The Tribunal considered the statements of the directors of both companies involved and found that the brand name "MITASO" was used in the same style and fashion by M/s. MAL on the Mixer/Grinder. The Tribunal concluded that M/s. MAL had a clear understanding that the brand name was registered for their goods, including Mixer/Grinder. Therefore, the Tribunal rejected the contentions raised by the Senior Counsel and allowed the appeal in favor of the Revenue, setting aside the impugned order.

Conclusion:
The Tribunal ruled in favor of the Revenue, determining that the brand name "MITASO" was registered and used by M/s. MAL for "Electrical household equipment," including Mixer/Grinder. The Tribunal found that the goods fell under the specified category, making the assessee ineligible for the exemption under Notification No. 175/86-C.E. The decision was based on the interpretation of brand ownership, classification of goods, and application of relevant trade rules in the case.