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TMI Blog2007 (4) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 imported by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted 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 as under : (a)&nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther bring into existence a auto door system is incorrect. In some cases, the customers have placed orders only for the items which are manufactured by them and not for the items in which they are trading. They never manufactured 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 custome ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit in 2001 and again in 2005 and once collaborator agreement and the items manufactured by them and its sale pattern was in the knowledge of the department, no suppression can be alleged on their part. They were not required to declare 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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