2019 (2) TMI 564 - AT - Central Excise

Tribunal rules on SSI Exemption entitlement, stresses accurate disclosures

M/s. Saraswati Engineering Works, M/s. Mangeshbhai G Jadav Versus C.C.E. & S.T. - Bhavnagar

M/s. Saraswati Engineering Works, M/s. Mangeshbhai G Jadav Versus C.C.E. & S.T. - Bhavnagar - TMI Issues involved: Entitlement for SSI Exemption under Notification No. 08/2003-CE dated 01.03.2003 based on ownership of the brand name 'SNT' assigned to the appellant.Comprehensive Analysis:Issue 1: Ownership of Brand NameThe appellant claimed ownership of the brand name 'SNT' based on an assignment deed dated 08.04.1993. The appellant argued that subsequent actions, such as a deed of ratification in 2006 and trademark registration in 2008, reinforced their ownership. However, the Revenue contended that the assignment deed was questionable, pointing out discrepancies and the assignor's renewal of the trademark. The Tribunal examined the assignment deed and found it lacking essential details, concluding that the brand name 'SNT' remained with the assignor until the appellant's application to the trademark registry in 2006. Therefore, the appellant was entitled to SSI Exemption only from December 2006 onwards.Issue 2: Time Bar and Mis-declarationRegarding the issue of time bar, the appellant argued that they had declared the use of the brand name 'SNT' to the department, indicating no suppression of facts. However, the Tribunal found that while the use was declared, the ownership was not disclosed, constituting a mis-declaration and suppression of fact. Consequently, the demand was not time-barred.Conclusion and DispositionThe Tribunal ruled in favor of the Revenue, stating that the appellant was entitled to SSI Exemption only from December 2006 onwards. The adjudicating authority was directed to re-quantify the demand and issue a fresh order. The appeal was disposed of through remand on these terms, emphasizing the importance of accurate disclosure in declarations to avoid mis-declarations and uphold tax obligations.This detailed analysis of the judgment highlights the key legal arguments, findings, and implications related to the entitlement for SSI Exemption based on brand name ownership and the consequences of mis-declaration in tax matters.