2016 (1) TMI 15

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..... E COURT OF INDIA) overruled the full bench judgment of this Tribunal in the case of Prakash Industries v. CCE [2000 (5) TMI 59 - CEGAT, COURT NO. III, NEW DELHI. The Hon'ble Supreme Court in both the cases cited (supra) held that once the brand/trade name is used in the course of trade of the manufacturer, which is indicating a connection between the goods - manufactured by him and the person using the brand/trade name, the exemption is lost. It was held that in any case, it cannot be forgotten that the customer wants his brand/trade name affixed on the product not for his own knowledge or interest. The customer is getting the brand or trade name affixed because he wants the ultimate customer to know that there is a connection between the p .....

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..... of non-printed cartons. The Department felt that as the printed cartons with brand name of others are not sold in the market as such these could not be treated as branded goods and as such the value of these clearances cannot be excluded in the aggregate value of clearances to arrive at SSI limit. Accordingly, proceedings were initiated against the appellant resulting in confirmation of demand with equal penalty and also penalty on the partner of the appellant firm. On appeal the learned Commissioner (Appeals) vide his order dated 23/3/2006 upheld the original order. The present appeals are against the said Commissioner (Appeals) order. 2. The short point for decision is whether or not the value of printed cartons and skin packagings w .....

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..... some person. Since, the printed cartons are not traded in the market these cartons are not to be treated as branded goods and consequently value of clearance of these goods are to be added to arrive at SSI limit. In the appeal before us, the learned Counsel strongly contested the above finding of the lower authority stating that printed cartons are nothing but branded goods that established a clear link between the brand owner, the product and the customer in the course of trade . In this connection, he relied on the Hon'ble Supreme Court decision in the case of Kohinoor Elastics (P.) Ltd. v. CCE [Civil Appeal No. 3197 of 2000, Date 04-08-2005]and Vir Rubber Products (P.) Ltd. v. CCE [2015] 51 GST 85. On the other hand, the learned AR .....

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