SSI exemption denied for franchisee-branded goods sold under another person's trade mark and market identity.

SSI exemption under Notification No. 8/2003-CE was unavailable where goods were manufactured and cleared under another person's brand name. The franchisee licence required prominent use of the trade mark, and the invoice descriptions, customer statements, and brand stickers showed the goods were sold as branded goods in the market. On that basis, the goods were treated as bearing, or being sold by reference to, the brand name of another person, and the demand was sustained.

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Issues: Whether the appellant was entitled to small scale industry exemption under Notification No. 8/2003-CE dated 01/03/2003 when the goods were manufactured and sold under the brand name of another person, including where the brand name appeared on invoices and the parties had a franchisee agreement requiring use of the trade mark.

Analysis: The documents and agreement showed that the appellant was a franchisee manufacturer for "sunflex" branded venetion blinds, vertical blinds and roller blinds. Clause 3(g) of the licence agreement required prominent use of the trademarks on the products and in promotional material, which supported the conclusion that the brand was intended to identify the goods in the market. The invoice descriptions, customer statements and the presence of brand stickers in the factory further established that the goods were being cleared as branded goods. The exemption was therefore unavailable because the goods bore, or were sold by reference to, the brand name of another person.

Conclusion: The appellant was not entitled to SSI exemption under Notification No. 8/2003-CE dated 01/03/2003 and the demand was sustained.

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