Brand name registered in director's name did not bar small scale exemption; duty demand and penalty were set aside.

Use of a brand name registered in the individual name of a company director does not amount to use of another person's brand name for denying small scale exemption. On the facts, the mark "Paras" was registered in the director's name in relation to the relevant goods, and the Tribunal held that the company's use of that mark did not disentitle it to SSI exemption. As the exemption was available, the duty demand and equal penalty were unsustainable and were set aside.

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Issues: Whether the assessee was entitled to small scale exemption despite use of the brand name "Paras", and whether the duty demand and equal penalty were sustainable.

Analysis: The brand name "Paras" stood registered in the individual name of the director of the appellant company, who was also connected with another group concern. On these facts, the Tribunal applied its earlier view that where the mark is registered in the individual name of a director, its use by the company does not amount to use of another person's brand name so as to deny SSI exemption. The registration of the mark in the director's name in relation to the relevant goods further supported the claim to exemption.

Conclusion: The assessee was entitled to the SSI exemption. The duty demand and penalty were unsustainable and were set aside.

Final Conclusion: The appeal succeeded and the impugned order was reversed in full.

Ratio Decidendi: Use of a brand name registered in the individual name of a company director does not amount to use of another person's brand name for denying small scale exemption.

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