2004 (6) TMI 415 - AT - Central Excise

Appellate Tribunal Grants Waiver of Duty & Penalty in 'Lexan' Trademark Case

The Appellate Tribunal CESTAT, Mumbai granted the application for waiver of pre-deposit of duty and penalty amounting to Rs. 22,13,364/- each, following ... Stay/Dispensation of pre-deposit - SSI Exemption Issues: Application for waiver of pre-deposit of duty and penalty arising from the confirmation of demand due to alleged misuse of a registered trademark.In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue at hand was the application for waiver of pre-deposit of duty and penalty amounting to Rs. 22,13,364/- each, following the confirmation of demand by the Commissioner of Central Excise, Vapi. The Commissioner held that the applicants had manufactured and cleared Corrugated Polycarbonate Lexan Sheets bearing the brand name 'Lexan,' a registered trademark of M/s. General Electric Company, U.S.A., rendering them ineligible for concessional duty rates under specific notifications.Upon hearing both sides, the Tribunal considered the applicant's explanation that the Polycarbonate Corrugated Sheets they received from M/s. G.E. Plastics India Ltd. had a masking protection film with the brand name 'Lexan,' which they removed before processing. The Tribunal found this explanation prima facie acceptable, especially noting that it was consistent with the Company Director's statements during recording. The Tribunal also highlighted that the department's case heavily relied on an order from Shapoorji Pallonji & Co. Ltd., confirming the supply of Lexan Polycarbonate Corrugated Sheets, but clarified that the final product did not carry the Lexan brand name. Based on these observations, the Tribunal concluded that a prima facie case for waiver of pre-deposit had been established. Consequently, the Tribunal waived the pre-deposit and stayed the recovery pending the appeal, providing relief to the appellant in this matter.