9911796707
TMI Blog2003 (9) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... be rejected and is therefore rejected. Once the claim for duty against M/s. SSAE stands abandoned, there is no escape from treating the respondents as independent manufacturer and therefore brand name issue has to be examined. In the appeal, great stress has been placed on the facts that, the manufactured goods under reference are precision engineering equipments, requiring elaborate technical know skill and other support which a small manufacturer like the respondents could not have accomplished without the active support from M/s. SSAE. It is claimed that, it is M/s. SSAE who are the real operators behind the issue. Therefore, the logo Varco appearing in conjunction with other letter in the full text namely, Varco Sara India (P) Ltd. , b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order passed by Commissioner (Appeals). The dispute relates to respondent's claim for small scale exemption Brand name and clubbing of clearances are the two main issues. 2.Facts in brief are :- M/s. Sara Services and Engineers (P) Ltd. (hereinafter referred as M/s. SSAE) are incorporated as company since 27-3-1980 and are holder of Central Excise Registration for manufacture of various "oil field equipments". One M/s. Varco B. J. Oil Tools BV, owned by M/s. Varco International, U.S.A., (hereinafter referred to as Varco B.J) who are pioneers in the manufacture of oil field equipments in the world, entered into a Memorandum of Understanding on 6-10-1990 with M/s. SSAE to promote and incorporate a joint venture company in the name and st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondents had successfully argued before the Commissioner (Appeals) that they have never used "Varco" on their products, instead a metal punch "Varco Sara (I) Pvt. Ltd.", was used on their products. They have not paid any premium to M/s. Varco B.J for royalty nor M/s. Varco B.J. have billed them for royalty. 7.The ld. Commissioner (Appeals) after examining the facts came to the conclusion that the inscription "Varco Sara (I) Pvt. Ltd" does not dis-entitle them for the benefit of small scale exemption contained in Notification No. 1/93-CE. After relying on the several decisions of the Hon'ble Tribunal as well as those of High Court, the respondents' appeal was allowed by the ld. Commissioner (Appeals). The Revenue challenges the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted it would be obvious that the respondents would cease to be an independent unit and would get merged with the unit of M/s. SSAE. In that situation duty needs to be demanded from M/s. SSAE. Though in the order-in-original duty has also been confirmed against M/s. SSAE, apart from confirming the same duty against the respondents, before the Commissioner (Appeals), the demand raised against M/s. SASE got quashed. There is no challenge in the instant appeal of the revenue to the effect that, Commissioner (Appeals) ought to have confirmed the demand against M/s. SSAE as against the demand confirmed against the respondents. In fact, the prayer is to confirm liability against the respondents. 12.It must be remembered that the liability to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are unable to accept this proposition. Once it is an admitted position that the respondents are an independent manufacturer, the revenue has to establish that the name "Varco Sara India (P) Ltd.", which is figuring on the equipments actually belongs to another person. Even if it were to be assumed that the word "Varco" in the entire text is similar to the text of " Varco" brand of a foreign company, even in that situation the text "Varco Sara India (P) Ltd.", can not be considered as the same as "Varco". On this specific point of law Tribunal in their order in the case of J. Prasad Polymers Ors. v. C.C.E., Meerut reported at 2003 (155) E.L.T. 486 (T) = 2003 (58) RLT 17 (CEGAT-Delhi) held that suffixing of words like "Mastana", "Parwana" aft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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