SSI exemption cannot be denied for use of a brand name not owned or registered by any person.

SSI exemption cannot be denied merely because goods are sold under a brand name that is not owned or registered in the name of any particular person. Where the record shows no evidence of proprietary ownership by anyone, and the brand name is available for use by anybody, the exemption remains available. The Board circular and earlier tribunal decisions supported this position, and the disallowance was therefore set aside in favour of the assessee.

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Issues: Whether SSI exemption could be denied on the ground that the goods were sold under a brand name not shown to be owned by any particular person.

Analysis: The Commissioner (Appeals) had recorded that the brand name was not registered in the name of any person during the relevant period and that no evidence showed ownership by any one. The Board's circular stated that use of a brand name not owned by any particular person would not deprive a unit of small scale exemption. Following the earlier decisions relied upon, the Tribunal held that denial of exemption was not justified where the brand name was not owned by anyone and could be used by anybody.

Conclusion: SSI exemption could not be denied on the ground of use of the impugned brand name, and the disallowance was set aside in favour of the assessee.

Ratio Decidendi: A small scale unit cannot be denied exemption merely because it uses a brand name that is not owned or registered in the name of any particular person.

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