Brand name exclusion under small scale exemption turns on whether a marking indicates trade connection with another person.

Small scale exemption under Notification No. 175/86-C.E. is unavailable where goods bear the brand name or trade name of another person, and the expression is construed broadly to include any mark or writing indicating a trade connection. The marking "APEL" on voltage stabilizers required a proper inquiry into whether it signified such a connection, rather than being accepted at face value as merely indicating intended use for another entity. The earlier finding that paragraph 7 was not attracted was set aside, and the matter was remanded for fresh decision after proper examination and hearing.

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Issues: Whether the letters "APEL" printed on voltage stabilizers manufactured by the assessee amounted to use of another person's brand name so as to deny the benefit of the small scale exemption under Notification No. 175/86-C.E.

Analysis: Paragraph 7 of Notification No. 175/86-C.E. withdraws the exemption where specified goods bear the brand name or trade name of another person not eligible for the exemption. Explanation 8 gives a wide meaning to brand name or trade name and covers any name, mark, label, invented word or writing used to indicate a connection in the course of trade between the goods and some person. On the facts, the authority below accepted the assessee's explanation that "APEL" was only intended to show that the goods were meant for APEL, without examining whether the marking indicated a trade connection with APEDCL or the nature of its commercial activity. The record required deeper inquiry before the expression could be treated as outside the scope of the notification.

Conclusion: The finding that the use of "APEL" did not attract paragraph 7 was set aside, and the matter was remanded for fresh decision after proper examination and hearing.

Ratio Decidendi: A word or marking may constitute a brand name for exemption purposes if it indicates a connection in the course of trade between the goods and another person, even where the identity of that person is not expressly stated.

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