2001 (6) TMI 276 - AT - Central Excise

Summary

Issues Involved:
Classification of manufactured gears under Heading 84.48 or 84.83, affixing goods with brand name "LMS" affecting eligibility under Notification No. 175/86-C.E., relationship with M/s. LMS Marketing Pvt. Ltd. under Section 4(4)(c) of the Central Excise Act.

Analysis:

1. Classification of Gears:
The appellant argued that the gears manufactured were suitable for dobby machines and should be classified under Heading 84.48, citing the decision in Flakt India Ltd. v. CCE, Calcutta. However, the Department classified the gears under Heading 84.83. The tribunal concurred with the Department, stating that gears are specifically covered by Heading 84.83 as per the Central Excise Tariff Act.

2. Affixing Brand Name "LMS":
The appellant contended that "LMS" was not a brand name but a reference to the late father of the director. However, the tribunal referred to a previous case involving Narendra Machine Works Pvt. Ltd., where it was held that even if "LMS" was an abbreviation of a personal name, it could still function as a brand name indicating a trade connection. Consequently, the benefit of Notification No. 175/86-C.E. was deemed unavailable for goods affixed with the brand name "LMS."

3. Relationship with M/s. LMS Marketing Pvt. Ltd.:
The tribunal found that there was a mutual interest between the appellants and M/s. LMS Marketing Pvt. Ltd. based on various factors such as shared ownership, financial transactions, and operational connections. Citing a previous case, the tribunal concluded that the appellants and the marketing company were related persons. The extended period of limitation was deemed applicable due to the suppression of material facts, and the redemption fine and penalty imposed were considered justified based on the total duty involved.

In conclusion, the tribunal upheld the Department's classification of gears under Heading 84.83, ruled out the benefit of Notification No. 175/86-C.E. for goods affixed with the brand name "LMS," and established a relationship between the appellants and M/s. LMS Marketing Pvt. Ltd. based on shared interests and financial interactions. The appeal filed by the appellants was rejected, affirming the decisions made in the lower authorities.