Brand name restrictions under small-scale exemption led to denial where goods carried ineligible persons' marks.

Small-scale exemption under Notification No. 175/86-C.E. was denied because the choke covers bore the brand name of ineligible persons. The Tribunal followed the Larger Bench ruling in Namtech Systems and held that goods affixed with such brand names do not qualify for the exemption, especially where the choke itself could not bear any brand name. On those facts, the earlier view rejecting exemption was applied and the denial of small-scale exemption was upheld.

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Issues: Whether the assessee was entitled to small-scale exemption under Notification No. 175/86-C.E. when the choke covers bore the brand name of ineligible persons.

Analysis: The matter was held to be covered by the Larger Bench decision in Namtech Systems. The Tribunal found that the choke covers were affixed with the brand name of ineligible persons and that the choke itself could not take any brand name. On the facts, the earlier view denying exemption where goods bear such brand names was followed.

Conclusion: The assessee was not entitled to the small-scale exemption under Notification No. 175/86-C.E.; the denial of exemption was upheld.

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