SSI exemption dispute over foreign brand name use led to prima facie waiver of pre-deposit and stay of recovery.

Denial of small-scale industry exemption under Notification No. 8/2003 for alleged use of a foreign brand name was examined at the interim stage on the basis of whether the brand belonged exclusively to another entity or was also associated with the appellant-company. On the material then available, the appellants were found to have a prima facie case against the duty demand, and waiver of pre-deposit with stay of recovery was granted for the duty and penalty amounts.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery in a demand of duty raised by denying small-scale industry benefit on the ground of use of a foreign brand name.

Analysis: The demand arose from denial of exemption under Notification No. 8/2003 on the allegation that the goods bore the brand name of a foreign company. The records and submissions indicated a dispute as to whether the brand name belonged exclusively to another entity or was associated with the appellant-company itself. On the material available at the interim stage, the appellants were found to have a prima facie case against the duty demand.

Conclusion: Waiver of pre-deposit and stay of recovery were granted for the duty and penalty amounts.

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