BC symbol on medicines deemed house mark, not brand name, for SSI exemption under Notification

Commissioner of Central Excise, Ghaziabad Versus M/s Petal Pharma Pvt. Ltd.

Commissioner of Central Excise, Ghaziabad Versus M/s Petal Pharma Pvt. Ltd. - 2019 (20) G. S. T. L. 257 (Tri. - All.) Issues:
1. Interpretation of brand name vs. house mark under Notification No. 175/86 for availing SSI exemption.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Allahabad was directed against Order-in-Appeal No. 61-CE/GZB/2005 passed by the Commissioner (Appeals) Central Excise & Customs, Ghaziabad. The case involved the issue of whether the symbol 'BC' used by the respondents on their medicines constituted a brand name or a house mark, affecting their eligibility for SSI exemption under Notification No. 175/86. The Revenue contended that the symbol 'BC' was a brand name as per the Notification, disqualifying the respondents from the exemption. The Commissioner (Appeals) analyzed the submissions and held that 'BC' was a house mark, not a brand name, citing precedents like the Astra Pharmaceuticals case and judgments of the Tribunal in similar matters. Consequently, the Commissioner allowed the appeal, setting aside the Order-in-Original dated 17.02.2005. The Revenue challenged this decision before the Tribunal.

The relevant ground of appeal filed by the Revenue argued that the 'BC' symbol was an identification of the manufacturer as per Drug Rules, while a brand name is how a product is identified and asked for. However, the Tribunal, after hearing both parties, upheld the Commissioner's finding that 'BC' was a house mark and did not violate the conditions of Notification No. 175/86. The Tribunal noted that the Revenue's ground did not challenge the Commissioner's determination that 'BC' was a house mark. As a result, the Tribunal dismissed the Revenue's appeal, affirming the Order-in-Appeal passed by the Commissioner.

In conclusion, the Tribunal's decision clarified the distinction between a brand name and a house mark under Notification No. 175/86 for SSI exemption eligibility. The case emphasized the importance of analyzing how products are identified and sold to determine the applicability of such exemptions, as demonstrated by the interpretation of the 'BC' symbol in this specific context.