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2015 (5) TMI 95 - AT - Central ExciseWaiver of pre deposit - Availment of SSI Exemption - Use of other company's brand name - Held that - So far as the brand names Ultra White , Korean , Samsung Champion and Diamond Gold are concerned, the department has not identified as to whom these brand names belong while according to the Appellant these brand names do not belong to anybody. In view of this position, we are of the prima facie view that the goods on which these brand names have been used, cannot be denied the benefit of the SSI exemption. - As regards the goods on which the brand name Decotouch and Diamond Gold have been used, the department's case against the appellant is that these brand names do not belong to Appellant but are registered in the name of M/s. Diamond Water Proof Compound Ltd., who have assigned these brand names under two assessment deeds to M/s. Diamond Retail Mart and M/s.Diamond Retail Mart, in turn, has assigned these brand names to the appellant. The Apex Court in the case of Primella Sanitary Products (2005 (4) TMI 70 - SUPREME COURT OF INDIA) has upheld the Tribunal's order allowing the SSI exemption under notification no.175/86-CE and 1/93, when the assessee was using the brand name registered in the name of another person under a bona fide assignment deed. We find that the same view has been taken by the Apex Court in the case of Vikshara Trading & Invest P. Ltd. (2003 (8) TMI 49 - SUPREME COURT OF INDIA). - amount already deposited by the appellant is sufficient for hearing of this matter and as such, the requirement of pre-deposit of the balance amount of duty demand, interest and penalty is waived for hearing of the appeal and recovery thereof is stayed - Stay granted.
Issues:
1. Eligibility for SSI exemption based on ownership of brand names. 2. Validity of assignment deeds for brand names. 3. Pre-deposit requirement for hearing the appeal. Analysis: 1. Eligibility for SSI exemption based on ownership of brand names: The case revolved around the appellant's eligibility for the Small Scale Industries (SSI) exemption based on the ownership of brand names "Decotouch" and "Diamond Gold." The department contended that since the appellant did not own these brand names, they were not eligible for the exemption. The Commissioner confirmed a duty demand against the appellant, along with penalties. The appellant argued that by virtue of assignment deeds, they should be considered the owners of the brand names, citing legal precedents supporting assignees being treated as owners. The Tribunal noted that the department failed to identify the owners of other brand names used by the appellant, leading to the prima facie view that the goods bearing those names should not be denied SSI exemption. 2. Validity of assignment deeds for brand names: Regarding the brand names "Decotouch" and "Diamond Gold," the department's argument was that these names belonged to a different entity, M/s. Diamond Water Proof Compound Ltd., and were assigned to the appellant through unregistered assignment deeds. The Tribunal referenced legal precedents where the Apex Court upheld SSI exemption for using brand names registered under another person's name through valid assignment deeds. Based on this, the Tribunal found the appellant's case strong and waived the pre-deposit requirement for hearing the appeal, considering the amount already deposited as sufficient. 3. Pre-deposit requirement for hearing the appeal: The appellant sought a waiver of the pre-deposit requirement for hearing the appeal, arguing that the amount already paid during investigation should be considered sufficient. The department opposed this, emphasizing the findings of the Commissioner and asserting that the appellant had not sufficiently established their case. However, the Tribunal, after considering arguments from both sides and reviewing the records, concluded that the amount already deposited was adequate for the appeal hearing and stayed the recovery of the balance amount of duty demand, interest, and penalty. In conclusion, the Tribunal ruled in favor of the appellant, allowing the appeal to proceed without the need for further pre-deposit and staying the recovery of the balance amount.
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