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of <h1>Entitlement under Notification No. 8/98-C.E. demands strict compliance; benefits cannot be extended by stretching its words</h1> SC held that entitlement to Notification No. 8/98-C.E. requires strict compliance with its terms; benefits cannot be conferred by stretching or adding ... SSI Exemption - Brand/Trade name - Whether the respondents are entitled to exemption of Notification No. 8/98-C.E., dated 2nd June, 1998 - Held that:- It is settled law that in order to claim benefit of a Notification a party must strictly comply with the terms of the Notification. If on wordings of the Notification the benefit is not available then by stretching the words of the Notification or by adding words to the Notification benefit cannot be conferred. The Tribunal has based its decision on a decision delivered by it in Rukmani Pakkwell Traders v. CCE, Trichy [1998 (2) TMI 581 - CEGAT MADRAS]. We have already overruled the decision in that case. In this case also we hold the decision of the Tribunal is unsustainable. It is accordingly set aside. In order to claim benefit of a Notification a party must strictly comply with the terms of the Notification. If on wordings of the Notification the benefit is not available then by stretching the words of the Notification or by adding words to the Notification benefit cannot be conferred - Decided partly in favour of Revenue. Issues:Whether the respondents are entitled to exemption under Notification No. 8/98-C.E. dated 2nd June, 1998 for excise duty payment based on the use of a brand name or trade name.Analysis:The case revolved around the interpretation of Notification No. 8/98-C.E., which granted exemption from excise duty for certain goods unless they bore a brand name or trade name of another person. The key issue was whether the respondents, part of a group of companies, had used the brand name of a different company. The registered trade mark 'Mahaan' was used by M/s. Mahaan Foods Ltd., and the respondents sold pickle with the same name in a similar style, albeit with the addition of 'Taste Maker.' The authorities determined that selling pickle with only the company's name did not disqualify them from the exemption, but using the registered brand name did.The Supreme Court referred to a previous judgment in Commissioner of Central Excise, Trichy v. Rukmani Pakkwell Traders, where it was established that using a trade name or brand name of another company, regardless of the goods, would disqualify the benefit of the Notification. The addition of extra words to the brand name did not enable the party to claim the exemption. This interpretation was supported by a decision in the case of Festo Controls (P) Ltd. v. CCE, Bangalore. The Court emphasized that strict compliance with the terms of the Notification was necessary to claim its benefits, and stretching or adding words to the Notification for benefit was impermissible.The Court dismissed the argument that the respondents had applied for the registration of the mark 'Mahaan Taste Maker,' clarifying that only upon registration would they be entitled to the Notification's benefits as per Board's Circular No. 88/88. The Tribunal's decision was deemed unsustainable and set aside. The appeals were disposed of with no order as to costs.
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