TMI Blog2007 (4) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... elevators and were availing SSI benefit by paying duty at concessional rate of duty applicable to them in terms of relevant notifications from time to time. Investigation revealed that the applicants were manufacturing goods bearing brand name of another person viz. Fermator which is the brand name of M/s. Technolama Spa, Spain, a reputed manufacturer of automatic doors for elevators and brand name GMV of GMV, Italy in respect of hydraulic systems cleared by them. A show cause notice was accordingly issued to them seeking to deny the benefit of SSI exemption. Demands were confirmed and penalties were imposed as stated above. 3. The learned Advocate for the appellants submits that the appellants viz. M/s. Lift Systems (India) Pvt. Ltd. are engaged in the manufacture of various components of lifts/elevators and are also separately carrying out trading activity from their godown located at Vasai and Goregaon. They referred to several such components manufactured by them and explained their functions as under :- A. Cabin Door Drive A Cabin Door Drive is a part of the door for lift. The cabin door drive has about 72 individual components out of which only 5 components are im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zes.) It was submitted that these items are designed and developed by the appellants. It is an assembly of about 30/33 different items. All the items are procured locally. These items are used by the buyers in the lift shaft at each landing (floor) at site. These do not carry any brand name. E. Car Frame Kit (of various types) This item is mainly fabricated item. None of the item for car frame kit is imported. This item is used by the buyer in the lift shaft. GMV does not manufacture car frame kit. F. Hydraulic Jack kit/Pit equipment (of various types) These are mainly fabricated items (about 27 items). None of the raw material for these items is imported. GMV does not manufacture hydraulic jack kit. This is used by the customers in the lift shaft. G. Photo cell It was submitted that this item is imported from Technolama and cleared from the factory on payment off duty without any processing. 4. Besides the above it was submitted that in 1996 the appellants were assembling power unit assembly of various sizes and hydraulic cylinder/ram/piston assembly using all imported components except tank. The above items were sold as individual item as well as collectively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufactured auto door system as such. 7. It was submitted that SSI exemption is being denied on the ground that the goods manufactured by them bear brand name of other. For this purpose, show cause notice refers to the name Fermator appearing on VVVF Module fitted on cabin door drive and the name GMV appearing in power unit assembly. In this regard, it was stated that cabin door drive is an assembly of 72 components. Each component may bear the name of the supplier or manufacturer of that particular component. In that case, it would be incorrect to suggest that the appellants are using 72 brand names for the product. The word Fermator is appearing on the VVVF Module used as a component in the manufacture of cabin door drive. They put a sticker bearing their name as cabin door drive to identify the product with their name. The product is sold by their name and they are indicated as the manufacturer. In one out of hundred cases, it is possible that a customer may have asked the cabin door drive by calling it as Fermator door, but it cannot lead to a suggestion that the products manufactured by the appellants are bought and sold in the market as Fermator Cabin Door Drive . The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the use of brand name as there is no requirement under the law for the same. 11. The learned SDR, however, submits that once a part carries a brand name the entire goods of which its part is to be considered as per the same brand name and in this regard he refers to the decision of the Apex Court in the case of Kohinoor Elastics Pvt. Ltd. v. CCE, lndore - 2005 (188) E.L.T. 3 (S.C.) where elastic which was carrying a brand name and was meant for use in the manufacture of under garments which does not carry a brand name of the elastic, was still held to be ineligible for SSI exemption on elastic by itself was sold bearing brand name of other. 12. We have considered the submissions. We find that SSI exemption has been denied on the ground that 2 parts, namely, VVVF Module fitted on cabin door drive carry brand name Fermator and the brand name GMV was appearing on the power unit assembly. We find that the parts which were carrying brand name were one of the 72 components in the case of cabin door drive and one small component i.e. valve assembly which was a part of the power unit assembly. Merely because one of the component was branded, does not mean that the goods manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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