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2014 (6) TMI 679 - AT - Central ExciseSSI exemption - manufacture of medicines - Use of brand name of others - Notification No.8/2001 dated 1.2.2001 - Penalty - Held that:- during investigation, Sanjeev Aggarwal, proprietor of the respondent firm was examined under section 14 of Central Excise Act, 1944 wherein he admitted that they are manufacturing goods on behalf of M/s. Soft Pharmaceutical, Chandigarh under their brand name but on 19.3.2004, Shri Sanjeev Agarwal changed his stand and submitted that actually the goods were sold under his brand name and not of M/s Soft pharmaceutical, Chandigarh and they are not paying any royalty to the said firm. The second statement of the respondent appear to be an afterthought, particularly, for the reason that the respondent have not led any evidence which will indicate that the goods, in question, were not sold under the brand of M/s Soft Pharmaceutical or M/s Pharmaceutical were promoter of the said product. In support of his contention, learned Counsel for the respondent had today produced packing box of one of the product ‘Vigor Plus’. On perusal of the packing, we find that this bears logo of Soft Pharmaceutical. Therefore, it is apparent that the Respondent were clearing the goods under the brand name of M/s Soft Pharmaceutical. Though the name of M/s Soft Pharmaceutical has been shown as promoter but they cannot be termed as distributor of goods for the reason that the Respondent had been selling the goods under the brand name of another person. - Respondent were clearing the goods under the brand name other person as such, they were not entitled to benefit of SSI exemption of Notification No.8/2001 - However, penalty is reduced to 25% of demand - Decided partly in favour of assesee.
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