Brand-name exemption dispute led to conditional pre-deposit because the mark appeared on the accessory, not the goods themselves.

Dispute over exemption based on brand-name usage turned on a prima facie assessment of whether the goods satisfied the notification condition. The Revenue argued that the buyer's mark did not appear in the relevant trade sense, while the record suggested that a sale to another manufacturer could still be a transaction in the course of trade. Physical examination showed the brand mark on the fan guard, not on the blade itself, and selling the blade and guard together did not by itself prove compliance. Complete waiver of pre-deposit was refused, but a substantial conditional deposit was directed, after which the appeal would be remanded for decision on merits.

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Issues: Whether, in the appeal against denial of exemption based on brand-name usage, the applicant was entitled to waiver of the entire pre-deposit and whether the matter should be remanded for disposal of the appeal on merits.

Analysis: The notification was invoked for goods manufactured during the relevant period, and the Revenue's objection rested on the premise that the goods did not bear the brand name of the buyer in the relevant trade sense. The record disclosed a prima facie infirmity in the Revenue's view that a sale to another manufacturer could not be a transaction in the course of trade. At the same time, on physical examination of the goods, the blade itself did not bear the brand name; the mark was found on the fan guard only. The fact that the blade and guard were sold together did not by itself establish that the brand name condition was satisfied in respect of the goods in question. In these circumstances, complete waiver was not warranted, but a substantial conditional deposit was appropriate.

Conclusion: The applicant was directed to deposit Rs. 4 lakhs within the stipulated time, upon which the impugned order would stand set aside and the appeal would be remanded for decision according to law.

Ratio Decidendi: Where the existence and location of the brand name on the goods are disputed, the grant of waiver of pre-deposit depends on a prima facie assessment of the exemption condition and may be conditioned by a substantial deposit.

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