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TMI Blog2018 (11) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also imposed a penalty of the same amount under Section 11AC of the Central Excise Act, 1944. 2.1 Appellants are manufacturers of table diaries and other printed materials. Search was undertaken in their premises on 17-07-2007. On the basis of the documents recovered during the search it was observed that the appellants are manufacturing goods falling under Chapter Heading 48 & 49 of the Central Excise Tariff. They had claimed the benefit of exemption under notification No 8/2003-CE dated 01.03.2003 during the period of 2006-07. 2.2 It was also found that the appellants had cleared branded diaries of Life Insurance Corporation without payment of duty. Since these diaries have logo of LIC printed on them, the exemption under notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion between the diaries and them. Further they have printed the said logo as required by LIC. Further LIC is also not in trade of selling the diaries, but is organization engaged in the business of insuring the life of people. Thus the logo of LIC printed on diary cannot be termed as brand name, but is only a house mark of LIC embossed on the diaries. Further there is no suppression of facts and hence larger period of limitation is not applicable in the present case. 4.0 Appellants were not present for hearing despite the notice, we have heard Shri D S Chauhan, Superintendent Authorized Representative for the revenue. 5.1 Para 4 of Notification No 8/2003-CE, provides that "exemption contained in this notification shall not apply to specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the manufacture of other machinery like diesel engines. It has been represented that such castings are not traded as such in the open market and they are made for use by specific users. In such cases, the brand name which is put on the castings is the brand name of the machinery manufacturer, and thus putting the brand name is only to suit the manufacturing needs of the customer. Consequently, in such cases, the benefit of SSI exemption should not be denied. Illustration II 3. There are certain SSI units which produce goods on behalf of another person and names of both the manufacturer and the person on whose behalf the goods are manufactured are reflected in the finished goods. For example, in the case of electricity meter cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Notification No. 1/93. Of course if it is found that such branded castings are traded in the market as such, it will amount to use of such castings in the course of trade and the benefit of exemption notification will not be available. In other words, so long as the branded castings are being supplied to the customer for further manufacture, and are not otherwise "traded", the benefit of small scale exemption in such cases should not be denied merely on the ground that it contains brand name of another unit. Whether such supply is in the course of trade or not, of course, will be a matter of fact and has to be ascertained from the nature of transaction between the small scale unit and the brand name owner. So long as they are made to orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003-CE cannot be denied. 5.3 Same view has been expressed by the tribunal in case of,- Electrohms (P) Ltd vs Commissioner Central Excise Bangalore [2000 (116) ELT 265 (T)] "5. On a careful consideration of the rival submissions and records of the case, we find that in this case the fixation of the words 'Indian Railways' on the name plate of the product in question, does not amount to use of a brand name of non-SSI unit, as is contemplated under the notification noted above, because of a simple reason that the said words are only indicating the owner of the goods, which are not even traded but only used by 'Indian Railways' for captive consumption. In the case of Astra Pharmaceuticals (P) Ltd. (supra) the Hon'ble Apex Court had held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 16/97 is not attracted. This was the view held by the Tribunal in both the decisions, relied upon by the ld. Advocate for the respondents. Following the ratio of these two decisions, we reject the appeal filed by the Revenue." 6.0 We find that that the issue is also squarely covered by the decision of this tribunal reported in 2018-TIOL-563-CESTAT-MUM, wherein after analyzing the text of the notification No 8/2003-CE and Circular No 71/71/94-CX, the bench concluded "6. ..., we find that it is admitted fact that the diaries manufactured by the appellant for LIC have not been traded by LIC. Accordingly, we hold that the appellant is entitled to exemption under Notification No. 8/2003-CE read with Circular No. 71/71/94-CX dated 27/10/1994. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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