9911796707
TMI Blog1998 (5) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... They also found 4 weighing scales ready for despatch which did not have any trade/brand name on them. At the registered office of this Appellants the officers found another quantity of 3 weighing machines similarly received back from Avery India for repairs. These were seized for action under Central Excise Rules as duty paid goods had been received back without following Central Excise procedure prescribed for the purpose. The weighing scales ready for clearance were seized as the officers found that upon switching on the scales the visual fluorescent display of the machine displayed the words AVERY for a few seconds before displaying ready to use 00" position. AVERY" is the brand name of the other Appellant herein. So the officers to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owingly received goods manufactured by Precision Scales and cleared without payment of duty thereon. 2. Learned Counsel Shri Shiva Dass argued the case for the Appellants and Learned S.D.R. Shri V.K.Puri made submissions for the Revenue. 3. Submissions made by both the parties have been duly considered. Taking up first the question of eligibility of Appellants Precision Scales to exemption under Notification No. 175/86 and its successor Notification No. 1/93, in the first Notification para 7 thereof bars the exemption to the specified goods with a brand name/trade name of another person who is not eligible for the exemption under the Notification. The corresponding provision contained in para 4 of Notification No. 1/93 continued to be i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd name of a trader was embossed. In the order of the Commissioner (Appeals), which was set aside by the Tribunal, it was noted that Notification 175/86 did not originally have the provision as in Para 7 which was added later by an amendment Notification No. 223/87, dated 22-9-1987 and the Commissioner (Appeals) observed that it was clear that the object of the provision was to prevent misuse of the exemption by ineligible persons by getting their branded goods manufactured by an SSI Unit, and because of this discernible objective of the permission the Commissioner (Appeals) held that the wording of para 7 needs to be interpreted giving wider connotation to the wording thereof so as to cover a situation in which the goods leave the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t apply to the specified goods where a manufacturer affixed the specified goods with a brand name or trade name (registered or not) of another person who is not eligible for the grant of exemption under this notification : Provided that nothing in this paragraph shall be applicable in respect of the specified goods cleared for home consumption before the 1st day of October, 1987. Explanation VII - Brand name or trade name shall mean a brand name or trade name, whether registered or not, that is to say a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same goods. They no longer need the benefit under the Notification. It must be remembered that by extending the benefit of exemption, the State is foregoing public revenue to which it is entitled under the Act. The loss to public revenue is supposed to be compensated by helping along the small manufacturers to survive in the market and continue to produce. Once he becomes one with his competitor, the need for supporting crutches disappears. There is no reason why in such a case the State should forego the revenue due to it under the Act." 6. As has been laid down by the Supreme Court, the exemption is designed to enable the small manufacturer to survive in the market in competition with the ineligible manufacturer. But if he joins or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S-7 model scales manufactured by appellant Precision Scales, the scale and head up display are cleared together and on the head-up display of these scales monogram of AVERY is printed which clearly would show clearance of the scales affixed with Avery brand name. We also find no substance in the argument of the Appellant that the letters appearing in the weighing scale display is not the same as the registered brand name of Avery. This is because in their own printed instruction manual of the scales for use by their customers, it has been indicated, that on pressing the key Avery Scale will be displayed before the scale sets to zero. In the result, we hold that the Appellant Precision Scales has been rightly held to be ineligible for exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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