Judgment

Arjan Kumar Sikri, J.

1. The Respondent herein is the manufacturers of composite diagnostics or laboratory regents and pharmaceutical goods. It is registered as a small scale industrial unit (SSI unit). The Respondent was using the brand name 'Stangen' on the goods manufactured by it. It is an admitted case that this brand name 'Stangen' was affixed on the packing of the goods and even on the goods manufactured. The Respondent started availing the benefit of exemption/concessional rate of duty under Notification No. 175/86-CE dated 1.3.1986 which grants exemption or concessional rate of excise duty to the SSI units.

2. However, in the year 1997 a show cause notice was issued to the Respondent by the Appellant/Excise Department stating that the Respondent is wrongly claiming the benefit of the aforesaid Notification inasmuch as use of the brand name 'Stangen' and also the logo belonged to Dr. K. Anji Reddy, Chairman of Dr. Reddy's Laboratories (DRL). It was stated that DRL is the manufacturer of bulk drugs falling under Chapter 30 of the Central Excise Tariff Act, 1985, and the trade mark 'Stangen' and related logo are used on the printed labels foils of the P & P medicine man