Brand name exclusion from small scale exemption applies when another company's logo indicates a trade connection on the goods.

Affixing another person's brand name or logo on specified goods disqualifies a manufacturer from the small scale exemption where the marking indicates a trade connection with that person. The Bombay HC held that the marketing company's logo on the assessee's goods fell within the exclusion under Notification No. 8/98-CE, and the claim that the logo was inconspicuous or used for quality control did not change its character. The assessee was therefore not entitled to the exemption, the Tribunal's order was set aside, and the demand restored.

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Issues: Whether affixing the logo of the marketing company on the goods manufactured by the assessee disentitled the assessee to the benefit of the small scale exemption under Notification No. 8/98-CE dated 02.06.1998.

Analysis: The exemption denied benefit where the specified goods bore the brand name or trade name of another person. On the facts, the goods carried not only the assessee's logo but also the logo of the marketing firm. The Court applied the principle that use of another person's trade name or logo to indicate a connection in the course of trade brings the case within the exclusion from exemption. The fact that the logo was said to be placed inconspicuously or for quality control did not alter the character of the marking as the marketing firm's logo on the goods.

Conclusion: The assessee was not entitled to the benefit of the small scale exemption; the issue was decided in favour of the Revenue.

Final Conclusion: The Tribunal's order was set aside and the order in original restoring the demand was upheld.

Ratio Decidendi: Where specified goods bear the brand name or logo of another person so as to indicate a trade connection with that person, the manufacturer is excluded from the small scale exemption, even if the marking is claimed to be inconspicuous or for quality control.

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