2006 (2) TMI 42 - AT - Central Excise

Central Excise - SSI Exemption - Brand name - Appellants manufacturing and clearing goods under the brand name of other manufacturer - Not entitled for the benefit of SSI exemption

Summary

Issues:
1. Denial of small scale exemption notification due to manufacturing and clearing goods under another manufacturer's brand name.

Analysis:
The appellants filed an appeal against the order denying them the benefit of small scale exemption notification as they were manufacturing and clearing goods under the brand name of another manufacturer. The appellants argued that they were using the brand name 'Pariwar Butter Bite,' with 'Pariwar' as the brand name and 'Butter Bite' as the variety of biscuits, indicating that 'Pariwar' did not belong to another manufacturer. They also contended that they declared the goods were cleared under the 'Pariwar' brand name, thus no suppression could be alleged. The Revenue, represented by the learned SDR, cited the Supreme Court decision in Commissioner of Central Excise v. Rukmani Pakkwell Traders to support their stance that using additional words to a registered trademark would not qualify for the small scale exemption.

The Tribunal observed that the appellants indeed used the brand name 'Pariwar Butter Bite,' with 'Pariwar' in small letters and 'Butter Bite' prominently displayed. The Trade Mark 'Butter Bite' was registered under another manufacturer's name, who had filed a complaint under the Trade & Merchandise Marks Act, 1958, against the appellants for using their trademark. The appellants acknowledged this claim before the authority. The Tribunal concluded that the appellants were indeed manufacturing and clearing goods under another manufacturer's brand name, thus not eligible for the small scale exemption. Additionally, the Tribunal noted that the appellants' declaration only mentioned affixing the 'Pariwar' brand name without specifying 'Pariwar Butter Bite' as displayed on the wrapper. Referring to the Supreme Court decision in CCE v. Rukmani Pakkwell Traders, the Tribunal reiterated that adding words to a registered trademark of another manufacturer does not entitle the assessee to claim the small scale exemption.

Based on the above analysis, the Tribunal found no fault in the impugned order and dismissed the appeal.