Valid brand assignment defeats denial of SSI exemption where the mark is no longer another person's brand.

A valid assignment of a brand name can prevent denial of Small Scale Industry exemption where the brand is no longer treated as belonging to another person. The assignment agreement dated 01-04-2001 was accepted as an effective transfer of brand rights to the respondent, so its use of the mark did not amount to use of another person's brand name. On that basis, the denial of exemption under Notification No. 8/2001-CE was unsustainable, and the respondent remained entitled to the SSI benefit. The contrary revenue precedent was distinguished because the genuineness of the assignment deed was in doubt there, unlike on these facts.

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Issues: Whether, after a valid assignment of brand name in favour of the respondent, the use of that brand could still be treated as use of the brand name of another person so as to deny Small Scale Industry exemption under Notification No. 8/2001-CE dated 01-03-2001.

Analysis: The assignment agreement dated 01-04-2001 was accepted as a legal and effective transfer of the brand in favour of the respondent. On that basis, the respondent could not be regarded as using the brand name of another person. The precedent relied upon by the Commissioner (Appeals) supported grant of exemption on facts involving assignment of brand rights, while the Revenue's cited decision was distinguishable because the genuineness of the assignment deed was in doubt in that case, unlike here.

Conclusion: The denial of SSI exemption was unsustainable and the respondent was entitled to the benefit of Notification No. 8/2001-CE dated 01-03-2001.

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