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TMI Blog2019 (4) TMI 1967X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, it has been pointed out that the first of these is the abbreviated form of the name of the manufacturing company and, by no stretch, could it be held to be that of one of the parent entities. There is no doubt that the overseas entity, M/s IDAB Wamac International may also be abbreviated as IWI but neither can be same initials be alienated from the appellant-assessee. There is no evidence on record that the abbreviation was deployed, and even associated with, the overseas entity in the minds of customers which is an essential requirement for disallowance of the benefit of the exemption notification. It is also on record that the appellant-assessee had clarified the nature of the inscription TS 300 as a generic indication of the nomencl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt Ltd, a joint-venture company promoted by M/s IDAB Wamac International TB and M/s Newstech India Pvt Ltd, the other appellant-company in this proceeding, for the manufacture of 'counter stacker' and 'mailroom equipment' to be sold to medium and small newspaper establishments in the country. With the Indian entity holding 70% of the share capital, technical know-how was provided by the overseas entity. The investigations were pursuant to intelligence that the manufacturer, though availing benefit of notification no. 8/2003-CE dated 1st March 2003 intended for small-scale units, had been affixing the brand of the overseas promoter on goods and, therefore, liable to duties of central excise amounting to ₹ 15,60,000/- on 'mail room eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. This word can be considered as 'invented word' within the definition of the brand name/ trade name given in the notification since this word would indicate the connection between the buyer and seller in the normal trade of newspaper industry. This argument is further supported by various press briefings, mentioned in the show cause notice, whereby the connection with the foreign company has been clearly brought out. The supply of technical know-how, drawings, specifications etc. under the licensing agreement, clauses in confidentiality agreement and payment of ryalty would clearly demonstrate that there existed a connection between the foreign company with the appellants in the manufacture of "TS300" etc. In the light of the above eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00" etc.; which identifies the product with the foreign company, hence indicating a connection with the foreign company. Similarly, the reliance placed on the case law of Fine Industries (supra) would also not support the appellants, since the department has discharged its burden to prove that the foreign company was manufacturing identical goods under the brand name of 'TS300' etc. 5. The same contention has been raised by Learned Counsel for the appellants before us. It was further submitted that there is no finding on the vesting of the brand with the overseas promoter. He placed reliance on the decision of the Tribunal in Pouyet Communication India P Ltd v. Commissioner of Central Excise, Pondicherry [2010 (251) (ELT 286 (Tri-Chennai)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the overseas entity in the minds of customers which is an essential requirement for disallowance of the benefit of the exemption notification. The said notification does not bar units of availing the exemption from affixing names and the disbarment is only to the limited extent of using brand names of others. Hence, to arrive at the finding appellant by the first appellate authority, it was necessary to establish that 'IWI' was associated in the minds of potential customers with the overseas entity. 8. It is also on record that the appellant-assessee had clarified the nature of the inscription 'TS 300' as a generic indication of the nomenclature of the equipment, viz., 'turner stacker' with speed rating of 300. Again, other than a sweepi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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