Brand name restriction denies small-scale exemption when specified goods bear the trade name of an ineligible person.

A small-scale exemption tied to specified goods was unavailable where those goods bore the brand name of another person who was not eligible for the exemption in respect of those goods. The notification was treated as goods-specific, and the insertion of paragraph 7 by later amendment withdrew the benefit when the specified goods carried the brand name or trade name of an ineligible person. The brand owner's status as a trader in a different line of activity did not make the exemption available for the goods in question. The main exemption issue was decided in favour of Revenue, while the limitation question was remitted for fresh consideration.

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Issues: Whether the benefit of Notification No. 175/86-C.E., as amended, was available when the specified goods were affixed with a brand name owned by a person who was a trader and not a manufacturer of those specified goods.

Analysis: The exemption under Notification No. 175/86-C.E. was held to be goods-specific and linked to the specified goods themselves. Paragraph 7, inserted by Notification No. 223/87-C.E., withdrew the exemption where the specified goods bore the brand name or trade name of another person who was not eligible for the exemption. On the facts, the brand name "ARK" belonged to a separate legal entity engaged in trading of brass sanitary fittings and not to a manufacturer of the specified goods. The exemption could not be claimed by treating the brand owner's registration or status in another line of activity as sufficient for the goods in question.

Conclusion: The respondents were not entitled to the exemption under Notification No. 175/86-C.E. on the ground of use of the brand name of an ineligible trader.

Final Conclusion: The main exemption issue was decided in favour of Revenue, while the limitation question was sent back for fresh consideration.

Ratio Decidendi: A small-scale exemption notification that is specific to designated goods is unavailable where those goods bear the brand name or trade name of another person who is not eligible for the exemption in respect of those specified goods.

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