2026 (3) TMI 906 - AT - Central Excise

Trademark ownership determined on available evidence; absence of contrary proof secured SSI exemption entitlement for the brand owner.

Appellant established entitlement to SSI exemption for branded readymade garments by proving ownership of the trademark 'AKSH' on the record; Revenue's ... Entitlement to the benefit of SSI exemption under Notification No. 8/2003-C.E. dated 01.03.2003, as amended - branded readymade garments cleared under the brand 'AKSH' - burden of proof - benefit of doubt - Ownership of trade mark as precondition for exemption - Ownership of trade mark as precondition for exemption - HELD THAT: - The Tribunal accepted the documentary evidence placed by the appellant, including the application/letter and the image of the mark, and recorded that the Revenue did not produce concrete evidence to establish that the trade mark 'AKSH' belonged to any person other than the appellant. In view of the absence of positive evidence from the Revenue, the benefit of doubt was given to the appellant and the Tribunal held on the record that the appellant is the owner of the trade mark. [Paras 11] Revenue's allegation that the brand belonged to a third party is rejected and the appellant is held to be the owner of the trade mark 'AKSH'. Entitlement to SSI exemption for branded goods - HELD THAT: - Because the Tribunal found that the appellant owns the trade mark and is not using a third-party brand, the statutory condition disqualifying SSI benefit for clearance of goods under another's brand did not apply. The Tribunal therefore concluded that the appellant qualifies for the benefit of Notification No. 8/2003-C.E., as amended. [Paras 12] Demand of central excise duty confirmed by lower authorities is set aside and the appellant is held entitled to the SSI exemption. Final Conclusion: The Tribunal allowed the appeal, holding that the appellant is the owner of the trade mark 'AKSH' and therefore entitled to the SSI exemption under Notification No. 8/2003-C.E.; the demands confirmed by the adjudicating authority and the Commissioner (Appeals) were set aside. Issues: Whether the appellant is entitled to the benefit of SSI exemption under Notification No. 8/2003-C.E. dated 01.03.2003, as amended, in respect of branded readymade garments cleared under the brand 'AKSH', or whether the exemption is liable to be denied on the ground that the brand belongs to a third party.Analysis: The Tribunal examined the documentary record including the appellant's representation and the trademark image filed by the appellant, and noted that the Revenue alleged but did not substantiate ownership of the mark 'AKSH' by any third party. The adjudicating authority's conclusions that the mark was a reputed global or foreign brand were found unsupported by concrete evidence. In absence of positive evidence to displace the appellant's claim of ownership, the Tribunal applied the evidentiary principle that the benefit of doubt favors the appellant and considered whether, on the materials before it, the appellant could be regarded as the owner of the brand for purposes of entitlement to the SSI exemption under the notification.Conclusion: The appellant is the owner of the trade mark 'AKSH' on the record before the Tribunal and is therefore entitled to the benefit of SSI exemption under Notification No. 8/2003-C.E. dated 01.03.2003, as amended; appeal allowed in favour of the assessee.