Brand name exclusion does not apply where markings are only identifying particulars and not a trade mark of another person.

Markings stencilled on components manufactured for BHEL did not amount to BHEL's brand name or trade name for purposes of clause 7 read with Explanation VIII of Notification No. 175/86-C.E. The court held that the statutory test requires a name or mark used on the goods to indicate a trade connection with another person, and that identifying particulars such as quantity, weight, work order number, product number, unit code and destination were not enough. Contractual markings that merely helped identify the source of supply did not attract the brand-name exclusion, so the small-scale exemption could not be denied on that basis.

---

---

Issues: Whether the markings or inscriptions stencilled on components manufactured by ancillary units for BHEL amounted to a brand name or trade name of another person so as to attract clause 7 read with Explanation VIII of Notification No. 175/86-C.E. dated 1-3-1986 and deny the small-scale exemption.

Analysis: Clause 7 withdraws the exemption only where the manufacturer affixes the specified goods with a brand name or trade name of another person, and Explanation VIII requires a name or mark used in relation to the goods for indicating a connection in the course of trade with that other person. The markings on the goods identified quantity, weight, work order number, product number, ancillary unit code, and destination. They did not bear BHEL's name or any symbol, monogram, label, signature, or mark used by BHEL itself. The fact that the markings may have been made pursuant to contractual requirements, or may enable the recipient to identify the contractual source, was held insufficient to satisfy the statutory test.

Conclusion: The markings did not constitute BHEL's brand name or trade name, and the exemption under the notification could not be denied on that basis.

Ratio Decidendi: To deny exemption under a brand-name exclusion clause, the mark on the goods must itself be a name or mark of another person and must be used in relation to the goods to indicate a trade connection with that person; contractual or identifying markings that do not amount to such a mark are insufficient.

---