1999 (2) TMI 261 - AT - Central Excise

Summary

Issues involved: Appeal against denial of SSI exemption under Notification No. 175/86 for manufacturing 'Electric Point Machine' with 'Indian Railways' engraved on it.

Summary:
The appeal was filed against the Order-in-Original by the Collector of Central Excise, Bangalore, covering the period from 1-10-1987 to 9-5-1988. The issue revolved around the denial of SSI exemption under Notification No. 175/86 due to the presence of 'Indian Railways' engraved on the 'Electric Point Machine' manufactured for captive use by Indian Railways on railway tracks.

The appellant argued that the incorporation of 'Indian Railways' cannot be considered a brand name as the goods were not used for trading by Indian Railways but only for captive consumption. Citing a Supreme Court decision, the appellant contended that mere identification words do not constitute a brand name, especially when the goods are not traded commercially.

After considering the submissions and records, the Tribunal concluded that the inclusion of 'Indian Railways' on the nameplate did not amount to using a brand name of a non-SSI unit. The words were deemed as indicative of the owner of the goods, which were not traded but solely used by Indian Railways for captive consumption. Drawing on the Supreme Court decision, the Tribunal ruled in favor of the appellant, setting aside the Order-in-Original and allowing the appeal with any consequential relief as per law.