SSI exemption denied for use of another's logo as brand name on pumps, as it signified a trade connection.

Use of a logo or monogram that is not common to the trade and that indicates a trade connection with another concern constitutes use of that other concern's brand name for SSI exemption purposes. On the facts, the logo "K" on the pumps was found to have been used by M/s. VKPIPL and then by the assessee under a technology arrangement, so the assessee was treated as using another person's brand name. The goods being different did not change that effect. Small scale exemption under Notification No. 1/93 was therefore unavailable.

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Issues: Whether the assessee was entitled to small scale exemption under Notification No. 1/93 despite using the logo/monogram "K" on its pumps, and whether such use amounted to use of another person's brand name or trademark.

Analysis: The circular relied on by the assessee applied to a different industry and only to marks that were common to the trade and freely used by many manufacturers. On the evidence, the logo "K" was used by M/s. VKPIPL and thereafter by the assessee under a technology arrangement. The mark was used as a logo/monogram on the pumps to indicate a trade connection, and the fact that the goods of the two concerns were different did not alter the effect of brand name use for exemption purposes.

Conclusion: The assessee was using the brand name of M/s. VKPIPL in the form of the logo/monogram "K" and was therefore not entitled to the small scale exemption.

Final Conclusion: The denial of small scale exemption was upheld and the appeal was dismissed.

Ratio Decidendi: For SSI exemption, use of a logo or monogram that is not of common trade use and that indicates a connection in the course of trade with another person constitutes use of that person's brand name or trademark, disentitling the manufacturer to the exemption.

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