1998 (2) TMI 185 - AT - Central Excise

Summary

Issues:
1. Change in the cause title of the appeal from M/s. Weldequip to M/s. S.R.A. Brakes Pvt. Ltd.
2. Validity of change in registration certificate from partnership firm to a new company.
3. Impact of change in name on liability and enforcement of duty amount.
4. Opposition based on ownership dispute of brand name 'Ron'.
5. Consideration of arguments from both sides and decision on the application.

Analysis:
1. The primary issue in this case revolved around the application seeking a change in the cause title of the appeal from M/s. Weldequip to M/s. S.R.A. Brakes Pvt. Ltd. The applicant, represented by Shri S.K. Roychowdhury, argued that the change was necessitated due to the dissolution of the partnership firm M/s. Weldequip and the formation of a new company, S.R.A. Brakes Pvt. Ltd., which took over all assets and liabilities. The registration certificate was amended to reflect this change, and it was contended that the application for the change in the cause title was merely a formality following the registration certificate amendment.

2. The validity of the change in the registration certificate from a partnership firm to a new company was contested by the Revenue, represented by Shri R.K. Chowdhury. It was argued that the change was misleading as it altered the liability structure from unlimited liability of partners in a partnership to limited liability of shareholders in a company. The Revenue highlighted a confirmed duty liability of Rs. 6,78,902.38 against M/s. Weldequip, and raised concerns about enforcement if the change in name was allowed.

3. The impact of the name change on liability and enforcement of duty amount was a crucial aspect of the case. The Revenue contended that allowing the change would pose a risk to recovering the duty liability as the new company's shareholders' liability was limited, significantly less than the confirmed amount. Additionally, there were pending issues related to the revocation of the registration certificate and the existence of the dissolved firm for liability purposes based on previous tribunal judgments.

4. An additional issue arose from an opposition by Shri Ashis Mukherjee, citing a dispute over the ownership of the brand name 'Ron' between the applicant and M/s. S.R.A. Brakes Pvt. Ltd. This opposition raised concerns about potential prejudice in a separate case pending before the High Court on the ownership of the brand name and trade name.

5. After considering arguments from both sides, the Tribunal, comprising Shri P.C. Jain and Smt. Archana Wadhwa, dismissed the application of S.R.A. Brakes Pvt. Ltd. The decision was influenced by the Revenue's arguments, emphasizing the potential risks associated with the name change. The Tribunal clarified that its decision would not impact the ongoing proceedings initiated by the Revenue for the revocation of the registration certificate, and dismissed another miscellaneous application due to lack of standing in the matter before them.