SSI exemption depends on exclusive brand use during the relevant period, not permanent assignment of trade name rights.

SSI exemption cannot be denied merely because contract goods are manufactured under another person's brand or trade name where the assessee holds an exclusive licence to manufacture and clear those products during the relevant period. The agreement and annexure showed authorisation to use the collaborator's trade name, with royalty payable for technical know-how and manufacture. The decisive test was whether the assessee had the right to use the brand name during the disputed period; a permanent or irrevocable assignment was not required. The assessee was therefore entitled to SSI exemption, and the duty demand, interest and penalties could not survive.

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Issues: Whether SSI exemption could be denied on the ground that the goods were manufactured under the brand or trade name of another, when the assessee had been granted exclusive licence to manufacture and clear the contract products under the technical collaboration agreement.

Analysis: The exemption under the relevant SSI notifications was unavailable only where the specified goods were manufactured bearing the brand name or trade name of another person. The agreement and its annexure showed that the assessee was authorised to manufacture the contract products of the foreign collaborator, that the products were identified by the collaborator's trade name, and that royalty was payable for technical knowhow and for manufacture and clearance of those products. The relevant consideration was whether, during the disputed period, the assessee in fact had the right to use the brand or trade name. The limitation that the licence was for a fixed period and not permanently assigned was held to be irrelevant, because the assessee had exclusive rights during the period in question.

Conclusion: The assessee was entitled to SSI exemption and denial of the benefit on the ground of use of the collaborator's brand or trade name was not sustainable.

Final Conclusion: The duty demand, interest and penalties could not survive, and the assessee succeeded in the appeal with consequential relief.

Ratio Decidendi: For SSI exemption, the decisive question is whether the assessee had exclusive right to use the brand or trade name during the relevant period; a permanent or irrevocable assignment is not a prerequisite where such right is otherwise established.

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