2010 (11) TMI 925 - AT - Central Excise

Summary

Issues: Disallowance of SSI exemption based on brand name affixed on goods.

In this case, the main issue was the disallowance of the benefit of Small Scale Industries (SSI) exemption claimed by the appellants under Notification No. 175/86-C.E. for 'domestic electrical appliances' (mixies) due to the presence of the brand name "A TTK Product" on the cartons and guarantee cards of the goods.

The Tribunal noted that although the appellants marketed their goods under the common brand name "PREETT," the presence of the additional brand name "A TTK Product" on the packaging indicated a connection in the course of trade between the 'TTK Group' and the mixies. The Tribunal referred to Explanation VIII to Notification No. 175/86, which defines 'brand name' or 'trade name' as a name or mark indicating a connection in the course of trade between the specified goods and a person using such name or mark. It was established that the TTK Group and other TTK companies using the same brand name were not eligible for SSI exemption.

Based on the above analysis, the Tribunal upheld the demand, ruling that the appellants were not eligible for the SSI exemption due to the presence of the brand name "A TTK Product" on the goods. However, the Tribunal granted the benefit of cum-duty price to the appellants and allowed them to avail MODVAT credit after verifying the duty paid nature of inputs used in manufacturing the mixies.

Ultimately, the appeal was partly allowed by the Tribunal, with the operative portion of the order pronounced in open court on 12-11-2010.