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TMI Blog2000 (9) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... fixed the goods with the brand name G.S. and the logo G.S. International belonging to another person who was not eligible for the benefit of SSI exemption under Notification No. 175/86-C.E., dated 1-3-1986 as amended, and cleared the goods without payment of duty during the period 17-10-1989 to 18-8-1992. The duty on the quantity of goods so cleared was worked out at Rs. 6,36,781.33. Goods which had been detained by the officers on the day of search (19-8-1992) were subsequently (on 9-9-1992) seized under Section 110 of the Customs Act read with Notification No. 68/63-C.E., dated 4-5-1963 issued under Section 12 of the Central Excises and Salt Act (CESA). On the basis of the information gathered by the officers, the Department issued sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e/logo on identical goods manufactured by them (the former). The appellants, therefore, used only their own brand name/logo on the goods manufactured and cleared during the period of dispute and were eligible for the benefit of exemption under Notification No. 175/86-C.E. ibid, being a registered SSI unit. The demand of duty was, therefore, unsustainable in law. Ld. Advocate further submitted that the appellants only acted in good faith in the light of judicial decisions which held the field during the material time. They bona fide believed that the goods were exempt from duty in terms of the Notification. Therefore, there was no warrant for invoking the extended period of limitation against them. In this connection, he relied on the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al time. The goods affixed with such brand name/logo were known in the market as belonging to G.S. Auto International Ltd., thereby, satisfying the test of Explanation VIII under the Notification. There was no dispute of the fact that the goods manufactured and cleared during the period of dispute were affixed with the aforesaid brand name and logo which belonged to M/s. G.S. Auto International Ltd. It was also not disputed that M/s. G.S. Auto International Ltd. were not eligible for exemption under Notification No. 175/86-C.E. ibid. In the circumstances, the benefit of exemption under the Notification was not available to the branded goods cleared by the appellants during the period of dispute by virtue of the provisions of para 7 of the N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd name G.S. and the logo G.S. International being owned by M/s. G.S. Auto International Ltd., who were not entitled for the exemption under Notification No. 175/86-C.E., the appellants claim to the benefit of the Notification is definitely hit by the mischief of para 7 of the Notification, which provided as follows : The exemption contained in this notification shall not apply to the specified goods where a manufacturer affixes 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 . We, therefore, hold that the appellants are liable to pay Central Excise duty on the goods manufactured and cleared by them during the period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing the branded goods without payment of duty, bona fide believed that they were entitled to exemption under the Notification does not appear to be appealing. The decisions cited by ld. Counsel are found to be inapplicable on facts. No case has been made out against the confiscation of the seized goods. We, therefore, uphold the order of confiscation as well as quantum of redemption fine. However, having regard to the facts and circumstances of the case, we are of the view that a personal penalty of Rs. 50,000.00 imposed by the adjudicating authority is on the higher side and we reduce the same to Rs. 25,000.00. 7. We dispose of the appeal as above, with a direction to the Commissioner of Central Excise to re-work the duty to be demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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