2006 (1) TMI 329 - AT - Central Excise

Clocks cleared without logo, later affixed, entitle appellants to SSI exemption. Appeal allowed.

The Tribunal found that the appellants were eligible for the SSI exemption as the clocks were cleared without the logo affixed and only had it added after ... SSI Exemption - Brand name Issues: Interpretation of SSI exemption eligibility for clock parts cleared without affixed logo; Whether clocks became eligible for SSI exemption after installation and logo affixation.Analysis:1. The appellants were aggrieved by an order regarding the eligibility for SSI exemption. They cleared parts of clocks meant for various types of clocks and had a tie-up with a PSU Unit to install these clocks with the requirement to affix the Unit's logo after installation. The Revenue argued that since the clocks were affixed with the logo after manufacturing and clearing, the SSI exemption was not applicable.2. The Tribunal considered the argument that the clocks were not marketed with the logo affixed when removed from the factory. The clocks became part of the earth after installation, following which the Unit's logo was affixed for maintenance. The Tribunal concluded that since the clocks were not marketed with the logo affixed, the appellants were eligible for the SSI exemption as per the Notification.3. The Revenue relied on the findings of the Commissioner (Appeals), but the Tribunal noted that the clocks were indeed cleared without the logo affixed and only had the logo added after becoming part of the earth. The Tribunal accepted the ground that the clocks were cleared without any brand name or logo affixed, making the appellants entitled to the benefit of the Notification and allowed the appeal with consequential relief.4. In the operative portion of the Order, it was pronounced that the appellants were entitled to the benefit of the Notification as they had cleared the clocks without any logo affixed, and the appeal was allowed accordingly.