SSI exemption remains available for own-brand clearances despite separate third-party branded goods cleared on duty payment.

SSI exemption under Notification No. 8/2003-CE remained available for an assessee's own clearances even though some goods were cleared under third-party brand names on duty payment. The Tribunal applied the notification according to its own terms and held that branded clearances of goods bearing another person's trade name were to be treated separately from the assessee's exempt clearances. Where no Cenvat credit was taken for the exempt clearances, the branded third-party clearances did not by themselves defeat the exemption for the assessee's own products. The demand, interest and penalty were therefore not sustainable.

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Issues: Whether the appellant was entitled to SSI exemption under Notification No. 8/2003-CE dated 01.03.2003 despite clearing some goods under its own brand name and other goods under the brand name of third parties with payment of duty and availing Cenvat credit on inputs used for the branded goods.

Analysis: The exemption notification had to be read according to its own terms and the scheme of the notification. Clearances bearing the brand name or trade name of third parties were treated separately from the assessee's own exempt clearances, and such branded clearances did not disqualify the assessee from claiming exemption on its own products when no Cenvat credit was taken for those exempt clearances. The Tribunal applied the settled principle that branded goods of third parties do not defeat SSI exemption for the assessee's own goods where the notification conditions are otherwise satisfied.

Conclusion: The appellant was entitled to SSI exemption under Notification No. 8/2003-CE dated 01.03.2003, and the demand, interest, and penalty could not be sustained.

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