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2015 (2) TMI 787 - AT - Central ExciseSSI exemption - use of brand name of others - - Imposition of interest - Penalty u/s 11AC - Assessee were affixing/stitching labels of registered brand Sheetal on the children s garments purchased from non-duty paying SSI units and cleared the same without payment of Central Excise duty - Held that:- it is seen that the appellant has admitted that the brand Sheetal is of Shri Dhiren B. Shah hence should have sought clarification from department as to correct position of law. Be that it may, we uphold the duty liability and the interest thereof as there is no serious contest. - Demand of duty confirmed. Levy of penalty - Held that:- Appellant could have entertained a bonafide belief that the brand Sheetal being their own; as it is undisputed that Shri Dhiren B. Shah was the Director of the Company, and the brand was registered in his name and the appellant has also made an application with the Trade Mark authorities to register the brand in their name; and they did not pay excise duty as they were only affixing label of a seller. Since there could be confusion on this issue and the period involved in this case being the time when these provisions were introduced for the first time we find the appellant’s submission of there being no intention to evade duty has a strong force. Escapement of duty, if any, in the facts and circumstances of this case, may be due to bonafide belief of the appellant of interpretation of Notification 38/2003-CE. On this ground, we set aside the penalty imposed on the appellant in this appeal - penalty waived - Decided partly in favour of assessee.
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