The central legal point established in the judgment is the strict construction of exemption notifications and the application of brand names or trade names to specified goods, irrespective of the similarity of the goods for which the brand name is registered.

Head Note:

Code Of Civil Procedure - According to the appellants they manufacture ice-cream makers cooler and Popcorn makers and avail of the benefit of SSI Exemption Notification and sell ice cream maker in their own brand name "CREMICA" and sell the same to different customers including United Tele Shopping (`UTS) and Tele Shopping Network (`TSN) - goods were being examined by the Supervisors of these UTS & TSN customers before dispatch from their factory and stickers bearing UTS/TSN were being affixed - Department has treated the words UTS and TSN as brand name belonging to other and has disallowed the benefit of small scale exemption notification – tribunal imposed penalty on the appellant-company – according to respondent authority, exemption shall not apply to goods bearing the brand name or trade name of another persons - conclusions of the Tribunal are essentially factual and, therefore, there is no scope for interference -appeals dismissed.

Cases Referred:

Commissioner of Central Excise, Trichy v. Rukmani Pakkwell Traders (2004 (11) SCC 801).

Commissioner of Central Excise, Chandigarh-I v. Mahaan Dairies (2004 (11) SCC 798).

Commissioner of Central Excise, Calcutta v. Emkay Investments (P) Ltd. and Anr. (2005 (1) SCC526).

Judgment:

Dr. Arijit Pasayat, J.

1. In these appeals challenge is to the order passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi (in short `CESTAT). The basic issue is whether the appellants are clearing excisable goods manufactured by them bearing the brand name of another person.

2. Background facts in a nutshell are as follows:

The SSI Exemption Notification which provides exemption to the excisable goods manufactured by a SSI unit provides that the exemption shall not apply to goods bearing the brand name or trade name, whether registered or not, of another persons. Explanation to Notification defines the brand name as a name or mark, such as a symbol, monogram, label, signature or invented word or writing which is used in relation to the specified goods for the purpose of indicating a connection in the course of a trade between specified goods and some person using such name or mark with or without any indication of the identity of that person.

According to the appellants they manufacture ice-cream makers cooler and Popcorn makers and avail of the benefit of SSI Exemption Notification and sell ice cream maker in their own brand name "CREMICA" and sell the same to different customers including United Tele Shopping (in short `UTS) and Tele Shopping Network (in short `TSN) and that in respect of sale to UTS & TSN the goods were being examined by the Supervisors of these customers before dispatch from their factory and stickers bearing UTS/TSN were being affixed and these sticker bear the words "Checked Sl. No. Do not remove this sticker" and that the Department has treated the words UTS and TSN as brand name belonging to other and has disallowed the benefit of small scale exemption notification. It was submitted that the words UTS and TSN are not brand names but are the abbreviations of the name of the marketing companies which does not amount to use of the brand name.

Stand of the department was as follows:

It has not been controverted by the appellants that the excisable goods before clearance from their factory premises bear stickers of UTS/TSN and as per definition of the brand name given in SSI Exemption Notification, "brand name" means any name, symbol, monogram, label, signature or invented word or writing which indicates connection in the course of trade between excisable goods and same person using such name and that the words UTS/TSN mentioned on the packaging of the products indicate the connection in the course of trade with UTS and TSN.

After considering the rival stands the CESTAT concluded as follows: "A perusal of the sample shown by the learned consultant at the time of hearing revealed that the sticker mentions that it has been put after checking the quality of