Brand name clearances on full duty were excluded from SSI aggregate turnover under Notification No. 9/2000-C.E.

Clearances of goods bearing another person's brand name or monogram, when removed on payment of full duty and without claiming SSI exemption, were held outside the aggregate value for small-scale exemption under Notification No. 9/2000-C.E. The notification's exclusion for branded clearances applied because the goods carried the other concern's monogram, which fell within the definition of brand name. As those clearances were ineligible for exemption and duty had been paid at tariff rate, they could not be counted for computing the aggregate value of home clearances. The assessee therefore succeeded.

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Issues: Whether the value of clearances of goods bearing the brand name or monogram of another person, cleared on payment of duty, was required to be included in the aggregate value of clearances for availing small-scale exemption under Notification No. 9/2000-C.E.

Analysis: Paragraph 3 of Notification No. 9/2000-C.E. excludes from computation of aggregate clearances those clearances bearing the brand name or trade name of another person which are ineligible for exemption under the Notification. The goods supplied to the other concern were cleared with its monogram affixed, which fell within the definition of brand name under the Notification, and the clearances were made on payment of full tariff duty without taking SSI exemption. In such circumstances, the clearances could not be treated as includible for the purpose of computing the aggregate value of clearances for home consumption.

Conclusion: The value of such branded, duty-paid clearances was not includible in the aggregate clearances for the purpose of the small-scale exemption, and the appeal was allowed in favour of the assessee.

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