Small scale exemption cannot be denied solely for use of another's brand name without proof of trade connection.

Small scale exemption under Notification No. 8/2001-CE could not be denied merely because the goods bore another person's brand name. The exclusion applies only where the brand or trade name is used in a manner indicating a connection in the course of trade, supported by facts showing financial, commercial, or similar linkage or an intent to trade on another's reputation. In the absence of such evidence, ownership or registration of the mark by someone else was insufficient. The denial of exemption was therefore unsustainable, and the order was set aside.

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Issues: Whether the denial of small scale exemption under Notification No. 8/2001-CE was justified merely because the goods bore brand names belonging to other persons, in the absence of any allegation or evidence that the appellants used those names with the intention of indicating a connection in the course of trade.

Analysis: The exemption notification excludes specified goods bearing the brand name or trade name of another person, whether registered or not, only where the name is used in a manner indicating a trade connection. The deciding factor is not the mere existence of registration or ownership by another person, but the statutory indication of a connection between the goods and that person. The record contained no allegation of any financial, commercial, or other connection between the appellants and the alleged brand owners, nor any material showing that the appellants intended to take advantage of the reputation of another brand. In the absence of such factual foundation, the exemption could not be denied simply because the brands belonged to others.

Conclusion: The denial of exemption was unsustainable. The issue was decided in favour of the appellants.

Final Conclusion: The order denying the benefit of exemption was set aside and the appeals were allowed.

Ratio Decidendi: A small scale exemption cannot be denied merely because the goods bear another person's brand name; the statutory exclusion applies only when the brand is used so as to indicate a connection in the course of trade, which must be supported by relevant facts and evidence.

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