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2015 (4) TMI 353 - SC - Central ExciseSSI Exemption - Determination of turnover - Exclusion of goods manufactured under the brand name of others - Use of words such as HM, PAL, KH - Held that:- Once in respect of those goods where brand name of other party is used on manufactured goods and that other party is not a SSI unit, exemption is not available, it would lead to inevitable result that the value of such goods cannot be added as well, while considering the value of the goods cleared by the assessee in the previous year. CEGAT has given two other reasons to deny the relief to the appellant. In its order it has observed that letters such as “HM” and “PAL”, no doubt, were initials of the buyers of the goods and they constitute the brand name as well, however, what was indicated was only initials with the sole purpose to identify the goods for particular automobile company. After the supply of these goods, the said automobile companies were affixing their proper trade mark/ brand name thereupon. On this basis, it is mentioned that the Notification in question would not apply - This reasoning of the CEGAT is contrary to the law laid down by this court in 'Kohinoor Elastics (P) Ltd. v. Commissioner of Central Excise, Indore' [2005 (8) TMI 115 - SUPREME COURT OF INDIA]. Value of the goods meant for “HM”, “PAL”, “KH”, etc. could not have been included while considering as to whether the appellant is entitled to the benefit of the aforesaid Notification or not. Once that is excluded and the case is confined to the brand name 'VIR' which is the appellant's own brand name and in respect of which the appellant had claimed exemption, the value of goods cleared in the previous year was less than ₹ 3 crores. Therefore, the appellant shall be entitled to the exemption under the said Notification. - Decided in favoru of assessee.
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