9911796707
TMI Blog2006 (4) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... Jaipan for goods failing for various goods like Grinder, mixer, blender, juicer mixer grinder etc. These goods were manufactured by them and their turnover was between 10 to 12 crores. However, as per their say there was labour problem in their factory, and to overcome the problem and keeping the brand name in fact in the market they assigned the trade mark Jaipan to M/s. National Appliances vide deed of assignment dtd. 14-9-1997 for a sum of Rs. 1,000/- only. However, on the very next day the appellants M/s. National Appliances allowed M/s. J.D.A.L. to produce the same goods. Thereafter Shri Lalit Jani also allowed M/s. Alka Domestic Appliances and M/s. V.K. Engineering Co. and M/s. Jaipan Appliances Ltd., Daman and Jalaram Pvt. Ltd., Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nits like Alka Domestic Appliance, V.K. Engineering to whom also the brand name was assigned by the appellants were also sold only to M/s. J.D.A.L. It was further ascertained that the trade mark was not registered by the Trade Mark Registration authority till date and that M/s. J.D.A.L. have spend Rs. 20 to 25 Lakhs on advertisements and sales promotion of brand Jaipan. 2. In view of above fact, it was concluded by the department that the assignment of brand name by M/s. J.D.A.L. to the appellant was fake and not genuine as the consideration was too meager and the entire financial control of the unit of M/s. National Appliances was that of Shri Jainarayan Agarwal and that Shri Lalit Jani, a proprietor of M/s. National Domestic Appliances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch in fact belong to M/s. J.D.A.L. and therefore there was a suppression of fact. Besides confirming duty penalties of various amounts were imposed on the appellant, M/s. J.D.A.L. and other persons. This order was upheld by Commissioner (Appeals) who held that since the consideration for assigning the brand name to M/s. N.D.A. was too meagre and not sufficient even to cover the expenses of documentation and since M/s. N.D.A. allowed other companies such as Alka Domestic Appliances, V.K. Engineering, M/s. Jaipan Appliances Ltd., Daman etc. to use the brand Jaipan without any consideration the assignment of deed of Jaipan brand was not genuine. He, therefore, held that based on these facts it was clear that the appellants had manufactured and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration of the registration authorities as per their procedure. Even otherwise they invited attention to the Apex Court decision in the case of Collector of Central Excise, Ahmedabad v. Vikshara Trading Investment Pvt. Ltd. - 2003 (157) E.L.T. 4 (S.C.) wherein it was held that once it is a matter of fact that there was an assignment of trade mark in favour of the first respondent and that fact was not in serious dispute, the mere fact that the assignment was not registered could not alter the position. It was further held that it is permissible in law to have same brand name for different classes of goods owned by different persons. 6. It was further submitted that the impugned order passed by the appellate authority is void ab initi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uent development do create a grave doubt about the veracity of the transaction. Prima facie a consideration of Rs. 1,000/0 for unconditional transfer of brand name appears to be inadequate. The consideration was also paid belatedly. From the very next day the assignee permitted M/s. JD.A.L. and others to use his brand name for nil consideration. All the raw materials belonged to M/s. J.D.A.L. and as per his say this was given on credit. The guarantee card was in the name of M/s. J.D.A.L. The manufacturer s name was shown as M/s. J.D.A.L. and a non-existent company like Jai Engineering. The moulds were supplied free. No particulars of payment for raw materials or finished goods sold to M/s. J.D.A.L. is forthcoming. Therefore, it looks like t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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