SSI exemption and brand ownership: valid assignment of trade mark defeated denial based on use of another's brand name.

Where a trade mark had been validly assigned to the assessee company after family settlement and reconstitution of the earlier firm, the assessee was treated as the owner of the brand name. Mere continuance of the earlier name in the trade mark registry, without contrary evidence defeating the assignment, was insufficient to deny ownership. As the brand name was not another's brand, the bar against small scale industry exemption for use of another's brand name did not apply, and the denial of SSI exemption was set aside.

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Issues: Whether the assessees were entitled to small scale industry exemption when the brand name used on the goods had been assigned to them by deed of assignment and whether denial of exemption on the ground that the brand name belonged to others was justified.

Analysis: The record showed that the trade mark had undergone family settlements, reconstitution of the earlier firm, and a subsequent assignment in favour of the assessee company with effect from 01.12.1997. The earlier firm had ceased to function after the family settlement, and the assignee company had thereafter used the brand name as its own. Mere continuance of the earlier name in the trade mark registry, without contrary evidence displacing the assignment, was held insufficient to deny ownership. Since the assessee was the owner of the brand name, the bar against SSI exemption for use of another's brand name did not apply.

Conclusion: The assessee was held entitled to SSI exemption and the denial of exemption on the ground of use of another's brand name was set aside in favour of the assessee.

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