Assigned foreign brand name used under exclusive rights in India does not defeat small scale exemption eligibility.

Exclusive assignment of a foreign brand name to an Indian manufacturer for use in India does not, by itself, disqualify the manufacturer from small scale exemption under Notification No. 9/99-CE. Where the trade mark is assigned for a specified period and used only in India under exclusive rights, the assessee uses the mark in its own right rather than as the brand name of another person. On that principle, an assessee using an assigned foreign brand name may still claim the exemption, and the Revenue's challenge fails.

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Issues: Whether an assessee using a foreign brand name assigned to it under an agreement is entitled to small scale exemption under Notification No. 9/99-CE.

Analysis: The foreign owner had assigned the brand name to the Indian manufacturer for use in India exclusively for a specified period. In such a situation, the assessee uses the mark in its own right and not as the brand name of another person. The issue was covered by the principle that an assigned trade mark, when used under exclusive rights in India, does not disqualify the assessee from the benefit of the small scale exemption notification.

Conclusion: The assessee was entitled to the small scale exemption and the Revenue's appeal failed.

Ratio Decidendi: Exclusive assignment of a foreign brand name to an Indian manufacturer for use in India enables the manufacturer to claim the small scale exemption, as the mark is then used in its own right and not as the brand name of another person.

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