Appellants granted exemption as goods lacked foreign brand, only used part of Indian name for warranty

The Tribunal held the appellants eligible for small scale exemption, as the goods supplied did not bear the foreign supplier's brand name/trade-name, only a part of the Indian company's name for warranty identification. Despite arguments citing other cases, the Tribunal found no evidence of the foreign supplier's brand name/trade-name and accepted that neither the foreign supplier nor Indian manufacturers had such identification. The decision emphasized that using a part of the Indian company's name for identification did not disqualify the appellants from the exemption, overturning the previous order and restoring the original decision.

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Issues:
1. Eligibility for small scale exemption based on the use of brand name/trade-name on supplied goods.

Analysis:
The appellant claimed eligibility for small scale exemption arguing that the goods supplied to a public sector undertaking did not bear any brand name/trade-name, but only a part of the appellant-company's name for warranty identification. The appellant cited two Tribunal decisions in support. The JCDR contended that the foreign supplier's name was used on the goods, leading to denial of exemption based on the Namtech Systems Ltd. case and a Supreme Court decision. The Tribunal noted the Supreme Court's Explanation IX emphasizing that even the use of a part of a brand name or trade-name indicating a connection in trade could disqualify from exemption. However, the Tribunal found no evidence of the foreign supplier's brand name or trade-name and accepted the appellant's argument that neither the foreign supplier nor the Indian manufacturers had a brand name or trade-name. Consequently, the Tribunal held the appellants eligible for the small scale exemption, setting aside the impugned order and restoring the Order-in-Original.

In conclusion, the Tribunal allowed the appeals, emphasizing that the use of a part of the Indian company's name to identify manufactured parts did not disentitle the appellants from the small scale exemption. The decision was based on the absence of evidence regarding the foreign supplier's brand name or trade-name and the lack of such identification for both the foreign and Indian entities involved in the transaction.

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