Small-scale exemption and brand name marking: existing embossing on castings did not bar SSI benefit when the assessee did not affix it.

Small-scale exemption under the relevant notifications is not denied merely because castings already bear another manufacturer's brand name when received by the assessee. Where independent foundries manufacture castings to the brand owner's specifications and the brand mark is embossed at the casting stage, the exclusion clause does not apply if the assessee does not itself affix that brand name on the finished goods. The CESTAT relied on settled precedent, including an earlier identical ruling affirmed by the Supreme Court and a further Tribunal decision on castings received with an existing brand mark, to support this interpretation. On that basis, SSI exemption remains available in such circumstances.

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Issues: Whether the benefit of the small-scale exemption notifications could be denied where the brand name of another manufacturer was embossed on the castings at the casting stage and not affixed by the assessee.

Analysis: The goods were manufactured from castings made by independent foundries in accordance with the design and specifications of the brand owner, and the brand name was already embossed on the raw castings before they reached the assessee. The assessee did not affix any other manufacturer's brand name on the finished valves. The Tribunal applied the settled principle that the exclusion clause in the exemption notification is not attracted when the assessee is not itself affixing the brand name, but merely works on castings already bearing such mark. The earlier Tribunal decision on identical facts, as affirmed by the Supreme Court, and the corresponding Tribunal ruling on castings received with an existing brand mark supported this view.

Conclusion: The exemption could not be denied on the ground of use of another manufacturer's brand name, and the assessee was entitled to the SSI benefit.

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