SSI exemption and brand name use: unproven trade association with another person cannot deny the exemption.

Clearances of aluminium ingots bearing the mark "R K I" were held not to lose small-scale industry exemption merely because the mark appeared on the goods. The exemption is barred only when the mark is shown to be the brand name or trade name of another person and is used to indicate a trade connection with that person. On the record, there was no proof that "R K I" belonged to another entity, no evidence of invoicing or marketing in another's name, no showing that the unit was a dummy concern, and no customer evidence of such association. The duty demand and penalties therefore could not be sustained.

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Issues: Whether clearances of aluminium ingots bearing the mark "R K I" were ineligible for small-scale industry exemption on the ground that the mark constituted the brand name or trade name of another person.

Analysis: The exemption notification excludes clearances bearing the brand name or trade name of another person only when the mark is used in relation to the goods so as to indicate a connection in the course of trade between the goods and that person. On the record, the department did not establish that the mark "R K I" was owned or claimed by another person as a brand name, or that the goods were marketed as goods of that person. There was no evidence of invoicing in another entity's name, no allegation or proof that the unit was a dummy concern, and no corroborative material from customers to show a trade association with any other person. The use of the moulds bearing the mark was found to be incidental to their procurement from another concern and not intended to denote a trade connection.

Conclusion: The mark "R K I" did not constitute a disqualifying brand name or trade name for the purpose of the SSI exemption, and the duty demand and penalties could not be sustained.

Ratio Decidendi: A mark on goods will bar SSI exemption only if it is shown to be the brand or trade name of another person and to have been used to indicate a connection in the course of trade; absent such proof, exemption cannot be denied merely because the mark appears on the goods.

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