Valid assignment of brand name supports SSI exemption; registration in assessee's name is not decisive.

A valid assignment of a trade mark or brand name can support SSI exemption where the assignor has relinquished all right, title and interest in the mark. The decisive factor is the validity of the assignment and the assessee's entitlement to clearances under the exemption, not whether the brand was registered in the assessee's name. On the stated facts, the earlier firm had divested itself of rights in the brand, so the denial of exemption solely because the mark was originally owned by the assignor or remained unregistered in the assessee's name was unsustainable.

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Issues: Whether the assessee was entitled to the benefit of the SSI exemption notification where the trade mark and brand name were assigned to it by the partnership firm and the denial of exemption was based on the brand not being registered in the assessee's name.

Analysis: The assessee had commenced manufacturing under the brand name pursuant to a deed of assignment by which the assignor gave up all right, title and interest in the trade mark and brand names with effect from the stipulated date. The decisive question was not registration in the assessee's name, but whether the brand name had been validly assigned and whether the assessee was entitled to claim the exemption for its clearances. On the facts found, the earlier firm had divested itself of rights in the mark and the Revenue could not deny the exemption merely because the mark had originally belonged to the assignor or because the brand was not registered in the assessee's name.

Conclusion: The assessee was entitled to the SSI exemption and the impugned denial of benefit was unsustainable.

Ratio Decidendi: A valid assignment of a trade mark or brand name suffices for claiming SSI exemption, and exemption cannot be denied merely because the brand was not registered in the assessee's name when the assignor had relinquished all rights in favour of the assessee.

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