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TMI Blog2024 (10) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... , has to be dealt within the terms of the expressions used therein. Here, we are basically concerned with clause (b) and (c) of Para-4 as relied on by the Adjudicating Authority and the appellant respectively - The goods covered under clause (b) are not restricted to any particular area but only to the entitles specified therein whereas clause (c) restricts the exception only to rural area and hence, the two operates in different spheres and cannot be clubbed together for the purpose of interpretation. Support drawn from the decision of the Apex Court in COMMISSIONER OF C. EX., TRICHY VERSUS RUKMANI PAKKWELL TRADERS [ 2004 (2) TMI 69 - SUPREME COURT] , where the findings of the Tribunal that the exemption can be denied only if trade name or brand name is used in respect of the same goods, for which the trade mark is registered, were rejected observing that the Tribunal has done something, which is not permissible to be done in law. Considering the different expression used in the clause (b) and (c) of para-4 of the Notification, the intention of the department in granting and restricting the exemption is evident and the law is settled that where the words used are simple and clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the books of accounts during the physical stock verification. Statement of all the partners of the firm was also recorded under the provisions of the GST Act, 2017. Show cause notice dated 30.01.2019 was issued under the provisions of the GST Act, which was adjudicated vide order-in-original dated 05.03.2020 and the goods were confiscated. 3. During the examination of the documents recovered from the search operations and statements recorded, it revealed that the appellant had wrongly claimed the benefit of SSI exemption in contravention of the conditions mentioned in para-4 of the Notification, as they manufactured the pipes of the brand name of other company viz. M/s.Nootan Polymers, Rajkot during the period Jan., 2017 to June, 2017. Accordingly, show cause notice dated 21.12.2020 was issued demanding the central excise duty amounting to Rs.20,43,825/- under Section 11A(4) of the Act along with interest and penalty under Section 11A and 11AC of the Act. The Adjudicating Authority vide order-in-original dated 30.11.2021 confirmed the demand. Being aggrieved, the appellant preferred an appeal, which has been dismissed by the impugned order. The present appeal has been filed bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds bearing a brand name or trade name, whether registered or not, of another person, except in the following cases: (a) where the specified goods, being in the nature of components or parts of any machinery or equipment or appliances, are cleared for use as original equipment in the manufacture of the said machinery or equipment or appliances by following the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001: Provided that manufacturers, whose aggregate value of clearances of the specified goods for use as original equipment does not exceed rupees one hundred lakhs in the financial year 2002-2003 as calculated in the manner specified in paragraph 1, may submit a declaration regarding such use instead of following the procedure laid down in the said Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001; (b) where the specified goods bear a brand name or trade name of (i) the Khadi and Village Industries Commission; or (ii) a State Khadi and Village Industry Board; or (iii) the National Small Industries Corporation; or (iv) a State Small Indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ualifies the specified goods with the words, brand name or trade name of Khadi and Village Industry Board or National Small Industries Corporation or State Small Industries Development Corporation or State Small Industries Corporation, which implies that the goods even if they are bearing the brand name or trade name of these entities, they shall still be entitled to the exemption under the notification. The exception under Para-4(c) grants exemption to the specified goods if they are manufactured in a factory located in a rural area. The clause is clear and simple that if the goods are manufactured in a rural area, even if they are bearing the brand name or trade name shall be entitled to exemption. The distinction in the two clauses i.e. clause (b) and (c) is that the clause (b) restricts the applicability of the exception to the goods manufactured for the entities specified therein, whereas exception under clause(c) is area based i.e. goods manufactured in a factory located in rural area‟ only. The goods covered under clause (b) are not restricted to any particular area but only to the entitles specified therein whereas clause (c) restricts the exception only to rural area ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered brand name or trade name is used the exemption is lost. This makes it very clear that the exemption would be lost so long as the brand name or trade name is used irrespective of whether the use is on same goods as those for which the mark is registered. 12. Considering the different expression used in the clause (b) and (c) of para-4 of the Notification, the intention of the department in granting and restricting the exemption is evident and the law is settled that where the words used are simple and clear and there is no ambiguity, no further aid is required to interpret them. Secondly, the exemption notification has to be construed strictly within the four corners of the expression used in the notification. As discussed above, clause (b) of Para-4 explicitly uses the expression specified goods with brand name or trade name but clause (c) consciously do not use this expression. We, therefore, hold that the appellant is entitled to avail the SSI exemption benefit under the provisions of Para-4(c) as their factory is located in a rural area and the benefit cannot be denied for the reason that they have been manufacturing the goods bearing the brand name i.e. NOBLE , FITWELL an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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