SSI exemption and trademark assignment: unregistered deed did not defeat eligibility, and broad goods description covered trousers.

SSI exemption under Notification No. 8/02 could not be denied merely because the trademark assignment deed was unregistered with the trade mark authority, as settled law recognises eligibility on the basis of a valid assignment. The allegation that the transfer was a fac ade was rejected on the terms of the deed and the authorities relied upon. The deed's description of goods, covering readymade garments, hosiery, children's wear, clothing, jeans, neckties, uniforms and shoes, was held wide enough to include trousers of all kinds. The denial of SSI exemption was therefore unsustainable, and the assessee was entitled to the notification benefit.

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Issues: Whether the assessee was entitled to the benefit of the SSI exemption under Notification No. 8/02 despite the assignment of trademark not being registered with the trademark authority and the department's allegation that the transfer was a fac ade; and whether the assigned description of goods covered trousers.

Analysis: The exemption could not be denied merely because the assignment deed was unregistered, since settled law recognised entitlement on the basis of a valid trademark assignment. The allegation that the assignment was a fac ade was not accepted in view of the terms of the deed and the judicial authorities relied upon. The goods description in the deed covered readymade garments, hosiery, children's wear, clothing, jeans, neckties, uniform and shoes, and this was wide enough to include trousers of all kinds.

Conclusion: The denial of SSI exemption was unsustainable and the assessee was entitled to the benefit of the notification.

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