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2018 (1) TMI 624 - CESTAT NEW DELHIDemand of Duty @ 1% on gold and silver jewellery - use of brand name - distinction between brand name and house mark - case in dispute is that medallion of gold / silver and other articles of silver have been cleared bearing only the house mark. The brand name ‘Sanchi’ belonged to MMTC has not been embossed on any of these items and this fact is not in dispute - Held that: - In the CBEC circular No. B-1/3/2011 TRU dated 25.3.2011, issued at the time of introduction of 1% duty, it has been clarified that, “only such jewellery or other articles of precious metals which either bear or are marketed and sold under a brand name attract this levy. Whether a particular name or mark or symbol etc. is a brand name or not is a matter of fact, and can be ascertained from the manner in which it is understood in commercial or trade parlance. The test of goods being branded would be if the buyer seeks to buy the goods because they bear or are sold under a particular brand. As such, a mere mark of identity put by a jeweller or the job worker, commonly known as a ‘house mark’ shall not be considered a brand name.” In the case the medallions of gold/silver only the house mark “MMTC Logo” is applied on the articles. The brand name “Sanchi” is not appearing either on the articles or packing. Hence, Central Excise duty of 1% will be not payable on each goods - In the case of silver articles, it is on record that such articles bear the house mark but are sold with the brand name which appears in the packing material. Consequently, such articles are to be considered as sold with the brand name and hence will attract the levy of 1% in terms of notification. The appellant has stated, that the department has taken wrong sales figures. He has submitted the CA certificate supporting the correct sale figure as per records - the matter needs to be remanded to the adjudicating authority for requantification of the demand taking into account the correct turnover. Appeal allowed by way of remand.
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