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2018 (9) TMI 1493 - CESTAT NEW DELHISSI Exemption - packing and fixing of Brand names of others - Department took the view that packing of goods and fixing the brand names which did not belong to them, makes the process into one of the manufacture, but the two appellants will not be entitled to the benefit of the Small Scale Exemption in force at the relevant time. Held that:- The activity of undertaking packing and affixing the brand name is an activity of manufacture incurring the liability for payment of duty. The goods in question are automobile parts which are specified in the 3rd Schedule of the Central Excise Act - In their respective statements, both the proprietors of the appellant firms have also admitted to the fact of packing as well as affixing the brand names - the liability for the payment of Central Excise stands established against both the appellants. The brand name ‘VIKING’ is owned by the following three persons viz. Shri Vinod Kumar Dhawan, Shri Vijay Kumar Dhawan (Proprietor of M/s Vee Kay) and Shri Jugal Kishore Kohli - M/s Vee Kay will be entitled to the benefit of SSI Exemption in respect of the goods cleared with the brand name ‘VIKING’, but not for goods with ‘VIZA’ brand. The brand name ‘VIZA’ is claimed to be owned by Shri Vineet Dhawan, proprietor of M/s Clutch Engineers. This fact does not appear to be in dispute. Hence the goods cleared with the brand name of ‘VIZA’ by M/s Clutch Engineering will be entitled to the benefit of SSI Exemption, but not goods with ‘VIKING’ brand. The demand for Central Excise duty needs to be reworked and Adjudicating Authority is directed to requantify the demand - The order for confiscation and redemption fine and penalties also needs to be proportionately modified - appeal allowed by way of remand.
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