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2015 (10) TMI 623 - CESTAT NEW DELHI

2015 (10) TMI 623 - CESTAT NEW DELHI - TMI - Denial of SSI Exemption - Use of third person brand name - Held that:- Appellants were using the brand name belonging to other persons M/s. Inder Rubber Industries were using the brand name "Exide Super" while the brand name "Excide" belongs to M/s. Exide Industries Ltd. and also the brand name "Boxer" belonging to M/s. Bajaj Auto, M/s. Exide Rubber Industries were using the brand name "Exide" belonging to M/s. Exide Industries Ltd. The goods being ma .....

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s to be upheld. However, as regards the question of limitation is concerned, we find that during the period of dispute, there were a series of judgments of the Tribunal and also Larger Bench of the Tribunal in the case of Fine Industries (2002 (10) TMI 114 - CEGAT, COURT NO. II, NEW DELHI), wherein it was held that use by an assessee of the brand name belonging to another person would not result in denial of SSI exemption, if the goods being manufactured by the assessee are different from the go .....

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would be no justification for imposition of penalty on the appellant under Section 11 AC.

While the Commissioner (Appeals)'s order denying the SSI exemption is upheld, the duty demand would be confined only to normal limitation period. The imposition of penalty under Section 11 AC is also set aside - Decided partly in favour of assessee. - Excise Appeal Nos. E/1862 and 1863/2005-EX(DB) - Dated:- 9-4-2015 - Rakesh Kumar, Member (T) And S K Mohanty, Member (J),JJ. For the Appellant : Sh .....

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er Industries were using the brand name of "Exide Super" & "Boxer" on the tyres were being manufactured by them and part of the goods were being cleared without putting any brand name, in case of M/s. Exide Rubber Industries, they were putting the brand name "Exide" on the tyres being manufactured and cleared by them and they were also clearing some quantity without putting any brand name. The Department found that while the brand name "Exide" belongs .....

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53,859/- for the period from 1.6.97 to 20.03.2002 under proviso to Section 11 A(1) along with interest on it under Section 11 AB of the Central Excise Act and also for imposition of penalty under Rule 173Q of the Central Excise Rules, 1944. The above mentioned show cause notice dated 1.7.2002 also show caused M/s. Exide Rubber Industries for recovery of the duty of ₹ 1,85,290/- under Section 11 A of the Central Excise Act, 1-944 from them for the period from 12.06.2000 to 27.05.2001 along .....

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5 reversed the order of the Addl. Commissioner and accordingly, he confirmed the duty demands of ₹ 10,61,846/- and ₹ 1,59,733/- against M/s. Inder Rubber Industries and M/s. Exide Rubber Industries respectively along with interest on it under Section 11 AB and besides this, imposed penalty of ₹ 10,61,000/- on M/s. Inder Rubber Industries and of ₹ 1,59,000/- on M/s. Exide Rubber Industries under Section 11 AC read with Rule 173 Q and Rule 25(1) of the Central Excise Rules, .....

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n which was registered in the name of that person for the goods different from the goods being manufactured by assessee unit, the benefit of SSI exemption cannot be denied, that Apex Court in the case of CCE, Chandigarh-II vs. Bhalla Enterprises [2004 (173) ELT 225 (SC)] has held that SSI exemption cannot be denied to an assessee if he uses a brand name belonging to himself, although someone else is equally entitled to use that brand name, that in view of this, the appellants were under bonafide .....

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t product, that in view of this, the longer limitation period would not be available to the Department for recovery of short paid duty and also there would be no case for imposition of penalty. 5. Shri Ranjan Khanna, ld. Departmental Representative, defended the impugned order by reiterating the findings of the Commissioner in the impugned order and pleaded that the issue involved in this case stands decided against the appellant by the Apex Court's judgment in the case of Mahaan Dairies (su .....

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se of Bhalla Enterprises (supra) does not help the appellants, in any manner, as this is not the case where the use of the brand name was entirely fortuitous and could not on a fair appraisal indicate any such connection, that in this case, the appellants were using the brand name of M/s. Exide Industries Ltd. and M/s. Bajaj Auto Ltd., and it is not the case where the brand name was being used by an unknown trader or manufacturer in some remote areas, that the Apex Court in the case of CCE, Delh .....

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Judgment in the case of CCE, Bhopal Vs. Quantum Instruments & Electronics reported in 2014 (302) ELT 113 (Tribunal-Delhi) inasmuch as in this case, the appellant had not disclosed the full facts to the central excise officers about the goods being manufactured by them and the brand name being used by them on those goods and that in view of this, there is no infirmity in the impugned order. 6. We have considered the submission from both the sides and perused the records. 7. In this case, both .....

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