9911796707
TMI Blog2017 (6) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... rling Chemische Fabrik Gmbh', German Company, for transfer of technical knowhow of contract products namely "Foot Wear Adhesives & other chemicals, as specified in Annexure-1 of the said agreement. It appeared to the Department that the appellants were clearing the goods in the brand name of the German company and therefore not eligible for SSI exemption. A Show Cause Notice dated 20.09.2005 was issued alleging the above and proposing to recover duty along with interest and for imposing penalties. After due process of law, the adjudicating authority observed that the appellant was using the brand /trade name of the German Co. by transfer of exclusive right to use brand name for a period of five years and therefore, the SSI benefit canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Ld. AR, Shri R. Subramanian, AC, reiterated the findings in the impugned order. He asserted that there is nothing in the agreement to show that the appellant has been given the right to use the brand name. That the agreement does not mention anywhere specifically the word brand name and therefore, the agreement cannot be said to confer the right to use the brand name belonging to the German Company. Again, the agreement is only for a period of five years and there is no transfer of permanent right to use the brand name in irrevocable manner and therefore Commissioner (Appeals) has rightly denied the SSI benefit. 4. We have heard the submissions made by both sides. We have perused the technical collaboration agreement produced by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant was in fact transferred to him or not. 5. The objection by the Ld. AR is that the agreement does not mention the word brand name and that therefore there is no evidence that the brand name has been transferred to appellant. It is correct that all through the agreement, the word brand name has not been used. But Annexure-1 gives the details of the contract products which the appellant is authorized/ licensed to manufacture and clear. The said products have been specifically mentioned using the brand name of the German Company. Further, the appellant is also paying royalty for the technical knowhow as well as the manufacture and clearance in domestic market and export of the contract products. Therefore, it can be safely concluded tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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