House mark on labels does not bar SSI exemption where no distinctive brand name is used.

Affixing only the names of the supplier and the assessee-company on labels, without any distinctive brand name on the goods, does not by itself disentitle the manufacturer from small-scale industry exemption under Notification No. 175/86-C.E. The settled distinction between a house mark and a product mark was applied: a company name used merely to identify the manufacturer is not, on its own, a brand name for denying the exemption. On that basis, denial of SSI exemption on the labels alone was unsustainable, and the assessee's entitlement to the exemption was affirmed.

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Issues: Whether affixing the names of the supplier and the assessee-company on labels, without use of any specific brand name on the goods, disentitles the assessee from the benefit of SSI exemption under Notification No. 175/86-C.E.

Analysis: The labels showed only the names of the company and the supplier of raw material, and there was no allegation that any distinctive brand name associated with the goods had been used. The settled distinction between a house mark and a product mark was applied, under which a company name used as an identification of the manufacturer does not by itself amount to a brand name for the purpose of denying SSI exemption.

Conclusion: The assessee could not be denied SSI exemption merely because the labels carried the company names. The denial of exemption was unsustainable and the issue was decided in favour of the assessee.

Final Conclusion: The impugned order was set aside and the appeal was allowed, affirming the assessee's entitlement to the SSI exemption claimed.

Ratio Decidendi: Use of a company name or house mark, without use of a brand name identifying the goods, does not attract disqualification from SSI exemption under the notification.

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