2000 (7) TMI 604 - AT - Central Excise

Summary

Issues involved:
1. Whether the appellant was clearing excisable goods under their own brand name "NETA" or another person's brand name.

Analysis:
1. The appeal filed by M/s. A.S. Metal Company questioned whether they were clearing goods under their brand name "NETA" or another's. The Appellants claimed to manufacture Valves & Cocks under their brand "NETA," seeking exemption under Notification No. 1/93-C.E. The Assistant Commissioner denied the exemption, citing "NETA" as the registered trademark of M/s. NETA Metal Works. The Appellants argued that "NETA" was their trademark, supported by affidavits and a pending application for registration. They contended that the use of "R" above "NETA" indicated a separate identity. The Assistant Commissioner's decision was based on the belief that "NETA" belonged to another entity, denying the Appellants' exemption.

2. The Appellants' advocate emphasized the lack of natural justice in the Assistant Commissioner's proceedings, requesting a rehearing. They referenced a prior decision extending benefits under Notification No. 1/93 due to differences in color schemes and figures. The advocate argued for similar treatment based on distinct branding. However, the Assistant Commissioner's order stood, rejecting the appeal and maintaining that "NETA" was associated with another entity, rendering the Appellants ineligible for the exemption.

3. The Departmental Representative countered, asserting that the use of "R" after "NETA" did not establish a distinct brand name. Referring to legal precedents, the representative highlighted the significance of brand connection in trade. The Tribunal's decision in a similar case was cited, emphasizing the importance of overall similarity in determining deceptive similarity. The Department emphasized that "NETA" belonged to M/s. NETA Metal Works, and the Appellants' actions violated trademark laws.

4. The Tribunal analyzed both arguments, concluding that the Assistant Commissioner's order did not violate natural justice principles. The Appellants had the opportunity to present further affidavits but failed to do so. It was established that "NETA" was associated with M/s. NETA Metal Works, and the use of "R" did not create a distinct trade name. The Tribunal upheld the lower authorities' findings, denying the Appellants' exemption claim under Notification No. 1/93. Consequently, the appeal was rejected based on the established brand association and lack of distinctiveness in the Appellants' branding efforts.