SSI exemption may still apply despite use of another's brand name where the goods are different in nature and classification.

Small scale industry exemption remains available where an assessee uses another concern's brand name on goods that are different in nature and classification from the branded concern's products. The principle applied is that SSI benefit cannot be denied merely because of common brand usage if the two manufacturers deal in distinct goods. On the stated facts, the assessee's goods were held to be sufficiently different, so the exemption under Notification No. 1/93-C.E. was allowable and denial of the benefit was not justified.

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Issues: Whether the assessee was entitled to small scale industry exemption when it used the brand name of another concern on goods different from those manufactured by that concern.

Analysis: The goods manufactured by the assessee were held to be different in nature and classification from the goods manufactured by the concern owning the brand name. It was noted that the Larger Bench decision in Fine Industries and the Tribunal's later order in Sirocco Pressings had already laid down that SSI exemption cannot be denied merely because another person's brand name is used, where the goods manufactured by the two concerns are different. On the facts, the assessee's case fell within that principle.

Conclusion: The assessee was entitled to the SSI exemption under Notification No. 1/93-C.E., and denial of the benefit was not justified.

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