TMI Blog2017 (6) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... legation that they are clearing the goods in the name of another person will not sustain - demand set aside - appeal allowed - decided in favor of appellant. - E/178/2006 - 40941/2017 - Dated:- 13-6-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri P. C. Anand, Chartered Accountant for the Appellant Shri L. Paneerselvam, AC (AR) for the Respondent ORDER Per Bench The allegation raised against the appellant is that the appellants have manufactured and cleared the goods using the brand name of another, and thus wrongly availed the SSI exemption benefit. 2. The appellants are importing Monosodium Glutamate in bulk quantities and are repacking at 2.5 grams, 15 grams ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t they are using the trademark of another and that the benefit of the exemption cannot be therefore denied. 4. Against this learned AR Shri L. Paneerselvam adverted to the Trademark License Agreement and submitted that the agreement grants a license which is non-exclusive and non-transferable with no right to said license. The agreement gives a license to use the trademark only. Since there is no assignment of ownership of the trademark, it cannot be said that the appellants are the owners of the trademark. Therefore, the appellants are not eligible to avail the SSI benefit and the demand raised denying the SSI benefit is right and proper. 5. We have heard both sides and perused the records. 6. The only issue that poses for conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides and considered the submissions and find : - (a) In terms of the collaboration agreement dt. 19-4-91 and 11-12-91, the appellant has been granted a non-transferable right and licence to use the trade name of the foreign company. Thus, the appellants are the only company entitled to use this brand name in India. The ownership of a brand name flows either from registration or by use. In this case, the appellants, by virtue of the fact that they are the only company entitled to use the brand name and no other company is entitled to use the brand name in the country, they become the owners of the brand name by continued use of the brand name. Reliance is placed on the decision of the Calcutta High Court in the case of CCE v. ESBI Tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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