Dabur brand not a bar to SSI exemption; Tribunal rules in favor of appellant The Tribunal allowed the appeal in favor of the appellant, holding that the use of the 'Dabur' brand name on goods did not disqualify them from the Small ...
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Dabur brand not a bar to SSI exemption; Tribunal rules in favor of appellant
The Tribunal allowed the appeal in favor of the appellant, holding that the use of the "Dabur" brand name on goods did not disqualify them from the Small Scale Industry (SSI) exemption under Notification No. 8/2003-CE. The Tribunal considered Notification No. 24/2009-CE and Notification No. 47/2008-CE, determining that the appellant was eligible for the SSI benefits. The impugned order was set aside, granting relief to the appellant in accordance with the retrospective amendments to the SSI Notification covering a specific period.
Issues: Denial of SSI exemption based on brand name usage on goods cleared to another company.
Analysis: The case involved an appeal by the Revenue against a previous order passed by the Commissioner (Appeals), Central Excise, Indore. The dispute revolved around M/s Burplast Packaging Pvt. Ltd., engaged in manufacturing plastic products, clearing goods to M/s Dabur India Limited with the "Dabur" brand name. The Revenue contended that using the brand name of Dabur India Ltd. made them ineligible for the SSI exemption under Notification No.8/2003-CE. A show cause notice was issued, demanding payment and imposing penalties on the company and its Director. The appeal was dismissed by the Commissioner (Appeals) on 30.3.2012.
The appellant argued that the denial of SSI exemption was incorrect, citing Notification No. 24/2009-CE (N.T.) dated 21.10.2009, which clarified that using a brand name on packaging material supplied to the brand owner would not disqualify the manufacturer from the SSI exemption. The Tribunal examined the relevant notifications, including Notification No. 24/2009-CE and Notification No. 47/2008-CE, both amending the SSI Notification No. 8/2003-CE. The Tribunal concluded that there was no justification for upholding the demand on goods like PP Caps with the "Dabur" brand name, as they were eligible for the SSI Notification benefits, subject to meeting other specified conditions.
In light of the retrospective amendments to the SSI Notification, covering the period from 01.10.1987 to 01.09.2008, the Tribunal set aside the impugned order and allowed both appeals in favor of the appellant. The decision provided consequential benefits to the appellant, if any. The judgment was delivered by Mr. V. Padmanabhan, Member (Technical) of the Appellate Tribunal CESTAT NEW DELHI.
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