2000 (3) TMI 668 - AT - Central Excise

Summary

Issues:
- Whether the benefit of notification No. 1/93 is available to the appellants, M/s. Mukur Pharmaceuticals Co. P. Ltd., and M/s. Swift Formulations (P) Ltd.

Analysis:
The appellants, manufacturers of P & P medicines, were denied the benefit of notification No. 1/93 by the Commissioner Central Excise for affixing the brand name 'Swift' on their products. The Commissioner argued that 'Swift' was a specially invented word with a specific purpose, and since the appellants sold their products to another company using a similar brand name, it was owned by that company. The appellants contended that 'Swift' was not a brand name but a house mark, and their products were identified by other registered brand names. They cited legal precedents to support their argument that a mere monogram does not make a product proprietary. They also challenged the demand of duty and penalties, claiming a lack of evidence to prove 'Swift' as a brand name of another entity.

The Departmental Representative argued that 'Swift' should be considered a brand name as it was affixed by all appellants, indicating a connection to a specific entity. It was contended that the extended period of limitation should apply as the appellants did not disclose the use of another person's brand name. The Tribunal analyzed Notification No. 1/93, which exempts specified goods bearing a brand name of another person from benefits. The Tribunal found that the department failed to prove that 'Swift' belonged to another entity, as claimed. Citing previous cases, the Tribunal emphasized the department's burden to demonstrate brand ownership by another person to deny small-scale exemptions. As no evidence was presented to establish 'Swift' as another entity's brand name, the basis for demanding duty and imposing penalties was deemed lacking. Consequently, the appeals were allowed based on the absence of evidence regarding brand ownership, bypassing the need to determine whether 'Swift' qualified as a brand name or house mark, or if the extended period for demand confirmation was applicable.