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2014 (12) TMI 238 - AT - Central ExciseSSI exemption - user of similar brand name as the brand name of others - notification no.175/86-CE - Held that:- Even the use of the brand name by a SSI unit, which is similar to the brand name used by some other person or is a part of the brand name of another person would debar him from the benefit of the SSI exemption. However, during the period of dispute, in a case where a small scale unit used the brand name of another manufacturer, the benefit of SSI exemption could be denied to that unit only if the brand name owner was not eligible for the SSI exemption. In this case, there is no dispute about the fact that the brand name owner - M/s PRIPL, Bombay was registered with the Directorate of Industries as a small scale unit. However, during that period, that unit was not availing SSI exemption for the reason that its product had been classified by the Assistant Commissioner under Heading no.4009.99 where rate of duty is nil and this classification has been affirmed by the Commissioner (Appeals) as well as by the Tribunal as a result of which they were not paying any duty. For the purpose of SSI exemption to the respondent, what is material is as to whether during that period, the brand name holder (M/s PRIPL) was eligible for SSI exemption. It is not disputed that if as per the provisions of the SSI exemption, the value of the exempted goods is excluded from the aggregate value of the clearances of PRIPL, during each preceding financial year, the same would be well within the exemption limit. Therefore, it cannot be said that, during the period of dispute, the brand name holder, PRIPL was not eligible for SSI exemption and for this reason, it would not correct to deny the benefit of the SSI exemption to the respondent unit. Tribunal in the year 1998 vide order dated 19.3.98 held that the Synthetic Rubber Aprons and Cots are parts of the textile machinery and would be classifiable under Heading No.84.48, in our view, on the basis of this decision, the classification of the goods, during the period of dispute, cannot be revised and it has to be held that during the period of dispute, PRIPL, Bombay were eligible for SSI exemption and hence, use of their brand name ‘Precitex’ by the respondent unit would not debar them from the benefit of the SSI exemption - Decided against Revenue.
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