Composite brand names can still defeat SSI exemption when the pre-existing brand remains identifiable and indicates trade connection.

A composite mark that retains an identifiable pre-existing brand name of another person is treated as use of that other person's brand name if it still indicates a trade connection under the SSI exemption notification. Applying the broad definition of "brand name" in Explanation IX, the tribunal held that the addition of the assessee's own word did not remove the dominant association with the collaborator's mark. The clearances were therefore ineligible for SSI exemption, and the duty demand and penalty were sustained.

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Issues: Whether goods cleared by an SSI unit under the composite mark "AIDEES NEWALL" were hit by the bar in para-4 of SSI Notification No. 1/93-CE because the mark contained the pre-existing brand name "NEWALL" belonging to another person, thereby denying SSI exemption and sustaining duty and penalty.

Analysis: Explanation IX to the notification defines "brand name" or "trade name" broadly to include any name or mark used so as to indicate a connection in the course of trade between the goods and some person using that name or mark. The composite expression retained the essential and identifiable part "NEWALL", which was admittedly the collaborator's brand name. Adding the assessee's own word did not remove the trade connection created by the pre-existing mark. On the same principle applied in the cited apex court decisions, the branded goods remained goods bearing another person's brand name for the purpose of the notification.

Conclusion: The clearances were ineligible for SSI exemption, the duty demand was sustainable, and the penalty was justified.

Final Conclusion: The appeal filed by the department succeeded and the order in favour of the assessee was set aside.

Ratio Decidendi: For SSI exemption under the notification, a composite mark that retains an identifiable pre-existing brand name of another person will still be treated as use of that other person's brand name if it indicates a connection in the course of trade.

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