Brand-name exclusion under exemption notification does not apply where goods are supplied directly to the buyer bearing the buyer's own brand name.

Affixation of a buyer's brand name on control panels supplied directly to that buyer did not attract Paragraph 7 of Notification No. 175/86, because the exclusion applies only where the goods bear another person's brand or trade name in a manner indicating a trade connection. Where the goods are manufactured for and delivered to the very person whose brand appears on them, and not for sale under that brand in the market, mere use of the buyer's brand name is insufficient to deny exemption. The Larger Bench construction was followed, and the brand-name exclusion was held inapplicable.

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Issues: Whether affixation of the buyer's brand name on control panels supplied directly to that buyer attracted Paragraph 7 of Notification No. 175/86 and denied exemption.

Analysis: Paragraph 7 withdraws the exemption only where the specified goods are affixed with the brand name or trade name of another person not eligible for the exemption. The controlling test is whether such use indicates a connection in the course of trade between the goods and the person whose brand name is used. Where the goods are manufactured for and supplied to the very person whose brand name appears on them, and not for further trade under that brand, the mere affixation of the buyer's brand name does not satisfy the condition in Paragraph 7. The Larger Bench view relied upon in the order adopted this construction and rejected the contrary approach.

Conclusion: The affixation of the buyer's brand name did not attract Paragraph 7 of Notification No. 175/86, and the exemption remained available to the respondent.

Final Conclusion: The departmental challenge failed because the disputed clearances were held not to fall within the brand-name exclusion in the exemption notification.

Ratio Decidendi: Exemption is not denied by mere affixation of the buyer's brand name on goods supplied directly to that buyer unless such use indicates a trade connection with another person in the manner contemplated by the notification.

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