Eligibility of Notification No. 175/86 dated 1-3-1986 in respect of branded goods - Regarding - Central Excise - 88/88-CX.6

Eligibility of Notification No. 175/86 dated 1-3-1986 in respect of branded goods - Regarding Circular No. 88/88-CX.6 Dated 30-12-1988 [From F. No. 213/41 /88-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Eligibility of Notification No. 175/86 dated 1-3-1986 in respect of branded goods - Regarding. I am directed to say that an instance has come to the notice of the Board where the provisions of Notification No. 223/87 dated 22-9-1987 have been wrongly utilised for denying exemption to an SSI unit under Notification No. 175/86 dated 1-3-1986. 2. The facts of the case are that a small scale unit "A" are the owners of the trade mark "HOTLINE" with respect to the commodity gas stoves. The same trade mark "HOTLINE" is also owned by another company "B" but for the commodity television. The company "B" was however not eligible for exemption under Notification 175/86 dated 1-3-1986. The position thus was that the trade mark "HOTLINE" was simultaneously owned by two manufactures, one eligible for exemption under Notification No. 175/86 dated 1-3-1986 but not the other. The Assistant Collector denied the company "A" exemption under notification No. 175/86 dated 1-3-1986 on the ground that the trade mark/brand name belonged to the company "B" which was not eligible for the said exemption. For this the Assistant Collector relied on the amendment carried out to Notification No. 175/86 dated 1-3-1986 by Notification No. 223/87 dated 22-9-1987 inserting paragraph 7 in the former notification. 3. The matter has been examined by the Board. It is observed that as per Section 8 of the Trade and Merchandise Marks Act, 1958, a trade mark can be registered in respect of any or all goods. In other words, a trademark need not necessarily be in respect of all goods unless the registration has been so acquired. It is, therefore, quite possible and permissible to have the same trade mark/brand name for different classes of goods owned by different persons. In the instant case, the company "A" are the legal registered owners of the trade mark "HOTLINE" in respect of gas stoves whereas the company "B" are the registered owners of the same trade mark but for the commodity television. In that view, Notification No. 223/87 dated 22-9-1987 cannot be relied upon to deny the exemption to company "A" in respect of gas stoves manufactured under their own trade name / brand name "HOTLINE". Therefore before denying a company benefit of SSI exemption by relying on Notification No. 223/87 dated 22-9-1987, full facts regarding the ownership of the brand name/trade name should be first ascertained. 4. Pending cases, if any, may be disposed of on the above principle.