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Issues: Whether the assessee was entitled to small scale industry exemption under Notification No. 1/93-C.E. and Notification No. 8/98-C.E. when the goods were cleared under a brand name owned by another legal entity.
Analysis: The decisive question was whether the brand name used on the firework goods belonged to the partnership firm itself or to the company partner as an independent legal entity. The fact that the company was a major partner in the firm did not alter its separate legal identity or divest it of ownership of the brand name. There was no substantiated assignment of the brand name from the company to the firm, and the cessation of manufacturing by the company using that brand name did not make the mark a brand of the firm. Since the goods were cleared under the brand name of another person, the exemption available to small scale units was not available.
Conclusion: The assessee was not entitled to SSI exemption; the denial of exemption was upheld in favour of Revenue.
Final Conclusion: The orders extending SSI exemption to the assessee were set aside and the Revenue's appeals succeeded, with the cross objection rejected.
Ratio Decidendi: A small scale industry exemption is unavailable where the goods bear a brand name belonging to another separate legal entity, even if that entity is a partner in the assessee firm, unless a valid assignment or ownership in favour of the assessee is established.
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