Assigned trade mark rights can support SSI exemption where the brand is validly transferred to the assessee.

A valid assignment of a trade mark or brand name transfers the right to use the mark to the assignee for the relevant period, so the assigned brand is not treated as belonging to another person for denying Small Scale Industry exemption. The discussion applies the principle that a registered trade mark owner may assign and transmit the mark, and once the assignment is established, the assignor cannot be treated as continuing ownership or use that would disqualify the assessee from notification benefit.

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Issues: Whether the appellant was entitled to Small Scale Industry exemption notwithstanding manufacture and clearance of goods under a brand name assigned by agreement, and whether the assigned brand name could be treated as belonging to another person for the purpose of denying the notification benefit.

Analysis: The dispute turned on the legal effect of the assignment deed. Once the trade name and brand name were assigned to the appellant for consideration, the rights in the brand stood transferred to the appellant for the relevant period, and the earlier owner could not be said to continue using or owning the mark so as to create a disqualifying connection in trade. The Tribunal also relied on the principle that the owner of a registered trade mark is competent to assign and transmit it under Section 37 of the Trade and Merchandise Marks Act, 1958. On that basis, the precedent followed supported the view that the notification denial was not sustainable.

Conclusion: The appellant was entitled to the SSI exemption, and denial of benefit on the ground of use of another person's brand name was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal succeeded on merits.

Ratio Decidendi: A valid assignment of a trade mark or brand name transfers the right to use it to the assignee, and once such transfer is established, the brand cannot be treated as that of the assignor for denying exemption based on use of another person's brand name.

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