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TMI Blog2015 (4) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts under the said brand name and supplying the same to various customers. In addition, the appellant was also having job orders from some automobile companies like Hindustan Motors, Kinetic Honda, etc. Insofar as orders for manufacture of spare parts placed by these automobile companies are concerned, on the said goods, the appellant had been putting the identification mark such as "HM", "PAL", "KH", etc. The goods which were supplied to these automobile companies used to be cleared by the appellant on payment of excise duty. However, in respect of manufacture of its own goods under the brand name "VIR", the appellant claimed SSI benefit in terms of Notification No. 1/93 which provides for exemption from payment of excise duty on fulfil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & Gold (Control) Appellate Tribunal (hereinafter referred to as 'CEGAT'). Rejecting the aforesaid contention of the assessee and accepting the plea of the Department, the CEGAT has gone by the definition of "brand name" or "trade name" contained in para 4 of the aforesaid Notification and reads as under: - "4. The exemption contained in this notification shall not apply to the specified goods bearing a brand name or trade name, whether registered or not, of another person, except in the following cases: - (a) where such specified goods, being in the nature of components or parts of any machinery or equipment or appliances, are cleared for use as original equipment in the manufacture of the said machinery or equipment or appliances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is not to apply to those goods bearing brand name or trade name whether registered or not of another person, except in certain cases which are mentioned therein. The brand name or trade name is defined to mean a brand name or trade name whether registered or not, that is to say, a name or a mark such as a symbol, monogram, label, signature or invented word, etc., for the purpose of indicating or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person. From the aforesaid definition of brand name, it becomes apparent that on the goods manufactured by the appellant for the aforesaid automobile companies, the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered or not) of another person." This para 4 was amended vide Notification No. 59/94-CE dated 1.3.1994 and the word "affixes" was substituted by the word "bearing". The reason for this substitution is explained in para (iii) of para J of the changes 1994-95 dealt with "changes in the SSI scheme". This is so stated in para 10 of the said judgment which we reproduce below for the sake of clarification: Part (iii) of Para J of the Budget Changes 1994- 95 dealt with "Changes in the SSI schemes" explains the purpose of the amendment in the following words: "(iii) Brand name provision has been amended so as to provide that SSI concession shall not apply to the goods bearing the brand name or trade name of another person. The effect of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the CEGAT is untenable and not in accordance with law. We may mention that while giving its decision the CEGAT has gone by the unamended para 4 without taking into consideration the amended para and the implication thereof." Once we come to the conclusion that in respect of those goods where brand name of other party is used on manufactured goods and that other party is not a SSI unit, exemption is not available, it would lead to inevitable result that the value of such goods cannot be added as well, while considering the value of the goods cleared by the assessee in the previous year. We, however, find that the CEGAT has given two other reasons to deny the relief to the appellant. In its order it has observed that letters such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t customer, the course of trade, for him is such manufacture and sale. In such cases it can hardly be argued that there was no trade. Such a manufacturer stated that it was not argued that here was no trade. Such a manufacturer may, as per the order of his customer, affix the brand/trade name of the customer on the "goods" manufactured by him. This will be for the purpose of indicating a connection between the "goods" manufactured by him and his customer." The other reason given by the CEGAT is that "HM" and "PAL" are not the brand names. Here again, it has fell into legal error. Similar contention was rejected by this Court in 'Commissioner of Central Excise, Trichy v. M/s. Grasim Industries Ltd.'[2005 (3) SCR 466] in the following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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