Brand name ownership controls SSI exemption for branded goods when the mark is validly assigned to the manufacturer.

SSI exemption under Notification No. 175/86-C.E., as amended, was available for LPG gas stoves bearing the brand name "Hotline" because the trade mark had been validly assigned to the manufacturers and registered in their own name. The notification's brand-name bar applied only where the goods bore the brand name or trade name of another person who was not entitled to the exemption. Once ownership of the brand name stood in the manufacturer's name, the goods could not be treated as branded with another person's mark, and the exemption could not be denied on that basis.

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Issues: Whether the appellants were entitled to small scale industry exemption under Notification No. 175/86-C.E., as amended by Notification No. 223/87-C.E., for LPG gas stoves manufactured under the brand name "Hotline".

Analysis: Paragraph 7 of the exemption notification denied the benefit only where the manufacturer affixed the goods with the brand name or trade name of another person who was not eligible for the exemption. The decisive question was therefore ownership of the brand name. The trade mark "Hotline" had been assigned to the appellants and duly registered under the Trade and Merchandise Marks Act, 1958 with effect from 31-7-1987. Once the brand name stood in the appellants' own name, the goods could not be treated as bearing the brand name of another person. The Department's contention that assignment was insufficient and that some further element had to be shown was rejected.

Conclusion: The appellants were entitled to the SSI exemption and could not be denied the benefit on the ground of brand name ownership.

Final Conclusion: The exemption was held admissible to the appellants, and the connected appeals succeeded with consequential relief.

Ratio Decidendi: Under the amended small scale exemption notification, disqualification arises only when the specified goods bear the brand name or trade name of another person who is not eligible for the exemption; where the brand name has been validly assigned and stands in the manufacturer's own name, the exemption cannot be denied on that basis.

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