Small scale exemption and brand name markings required fresh factual verification before the exemption bar could apply.

Small scale exemption under Notification No. 175/86, as amended, depends on whether the goods bear the brand name or trade name of another person. The record indicated that the assessee had stopped using the purchasers' brand names and was only marking television cabinets with code numbers for identification, but there was no factual finding that those codes were in fact the buyers' brand or trade names. The matter was therefore remanded for the original authority to verify the nature of the markings and decide afresh whether the exemption was barred.

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Issues: Whether the denial of small scale exemption under Notification No. 175/86, as amended by Notification No. 223/87, was justified on the ground that the goods bore a brand name or trade name of another manufacturer.

Analysis: The exemption is unavailable only where the manufactured goods are affixed with the brand name or trade name of another person who owns such mark. The material on record showed that the assessee had stopped using the purchasers' brand names and had only written code numbers on the T.V. cabinets for identification. However, there was no factual finding that those code numbers were in fact the brand name or trade name of the T.V. set manufacturers. Since the nature of the markings was to the application of paragraph 7, the factual position required verification by the original adjudicating authority.

Conclusion: The matter was remanded for verification of whether the markings were brand names or trade names of the buyers and for fresh decision accordingly.

Final Conclusion: The assessee succeeded in obtaining a remand, and the exemption issue was left for fresh factual determination.

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