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TMI Blog2017 (6) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... ant had exclusive right over the brand/trade name of the licensor/contract products, and the appellant cannot be disbarred by invoking clause-4 of the notification. Appeal allowed - decided in favor of appellant. - E/761/2007 - 40867/2017 - Dated:- 24-5-2017 - Smt. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri V.S. Manoj, Advocate for the appellant Shri R. Subramaniyam, AC (AR) for the respondent ORDER Per: Sulekha Beevi C.S. The appellants are engaged in the manufacture of adhesives and solvents and were availing facility of SSI exemption benefit under the Notification No.8/2000-CE dated 01.03.2000 and No.9/2003-CE dated 01.03.2003. On scrutiny of records, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puted period in the brand name of the German Co. by virtue of the right received by them as per the technical collaboration agreement. He also pointed out that the Commissioner (Appeals) has proceeded to deny the benefit only on the ground that the right to use the brand name has not been permanently assigned in an irrevocable manner to the appellant. That, it is not necessary that the brand name has to be permanently assigned in order to avail the SSI exemption. He drew support from Annexure-1 to the agreement and contended that the contract products, the appellant is licensed to manufacture has been specifically stated along with the brand name in the annexure which would make it evident that the appellant has been given exclusive right t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-1 to the agreement. From the preamble of the agreement read with Article 1.7, it is clear that the German Company has not only transferred the knowhow and technical information, but also, all patents of the licensor that were in force during the time of agreement. When viewed in this context, it would be impossible to conceive a situation where the foreign licensor would only allow manufacture of the contract products and specific marketing rights within the given territory, but not transferred the right to use the trade market for this purpose. This being so, for the period of the agreement, the trade/brand name of the licensor of the contract products will have to be considered as having been transferred to the appellants. Hence, what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged that exclusive rights has been given to the appellant, however he has found fault with the fact that such rights were conditional and limited by time and also depending on the performance of the appellant to the satisfaction of the licensor. This in our view is irrelevant to avail benefit of SSI exemption as long as during the period of dispute, the appellant had exclusive right over the brand/trade name of the licensor/contract products, and the appellant cannot be disbarred by invoking clause-4 of the notification. 7. In arriving at this conclusion, we also draw sustenance from the ratio laid down by the Hon ble Supreme Court in the case of CCE, Bangalore Vs. Ottp Bilz (I) Pvt. Ltd. - 2015 (324) ELT 430 (S.C.) . In the result, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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