Brand name bar under small scale exemption applies where goods carry another ineligible manufacturer's logo despite the assessee's own brand.

Use of another manufacturer's registered logo or mark on goods can defeat small scale exemption where the notification bars specified goods bearing the brand name or trade name of an ineligible person. Clause 7, read with Explanation VIII, treats a mark used to indicate a trade connection as a brand name or trade name. The assessee's plywood carried the "MERINO" logo belonging to another manufacturer who was not eligible for the exemption, and adding its own brand name did not change that result. Strict compliance with exemption conditions is required, so the notification benefit was unavailable.

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Issues: Whether use of the logo/mark "MERINO" on the assessee's plywood along with its own brand name disentitled it to small scale exemption under Notification No. 175/86-C.E. by attracting Clause 7 read with Explanation VIII.

Analysis: Clause 7 denies exemption where specified goods bear the brand name or trade name of another person who is not eligible for the notification. Explanation VIII extends the meaning of brand name or trade name to a name or mark used to indicate, or so as to indicate, a connection in the course of trade between the goods and that person. The assessee's goods admittedly carried the registered logo "MERINO" belonging to another manufacturer who was ineligible for the exemption. The addition of the assessee's own brand name did not alter the legal effect. In a taxing exemption, the conditions of the notification must be strictly fulfilled, and the use of another person's ineligible brand or logo attracts the bar.

Conclusion: The assessee was not entitled to the small scale exemption, and the benefit of Notification No. 175/86-C.E. was correctly denied.

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