Small scale exemption turns on brand name use; manufacturer's own labels did not show another person's trade mark.

Small scale exemption under Notification No. 8/2002 was available because the goods did not bear the brand name or trade name of another person. The metal labels showed only the manufacturer's own name, business details and particulars, and there was no material to establish that the mark used connected the goods with any other trader. The burden to prove that exemption was barred by use of another person's brand name lay on the Department, and that burden was not discharged. The exemption was therefore upheld and the Revenue's challenge failed.

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Issues: Whether the respondents were disentitled to small scale exemption under Notification No. 8/2002 dated 01.03.2002 on the ground that the goods bore the brand name or trade name of another person.

Analysis: The metal labels affixed on the machines showed the manufacturer's own name and particulars, and did not indicate that the goods were cleared under the brand name "SAMS". The factual finding of the first appellate authority was that the name plates contained the manufacturer's full name and business details, and there was no material to show that the mark used was the brand name of another person. The burden to establish that the exemption was barred because the brand name belonged to another person lay on the Department. The legal position was also supported by the principle that a brand name or trade name must be a mark used in the course of trade to establish a connection between the goods and some other person, and not merely the identity of the manufacturer itself.

Conclusion: The respondents were entitled to the exemption, and the Revenue's challenge failed.

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