Brand name restriction on SSI exemption applies only when the manufacturer affixes another's mark before clearance.

Exemption under Notification No. 175/86 remained available to a small-scale unit within the prescribed clearance limit because the brand-name restriction applied only where the manufacturer himself affixed another person's brand name or trade name on the specified goods before clearance. On the record, there was no evidence of any such arrangement by the assessee; the material suggested that the purchaser may have affixed its brand name after purchase, which did not trigger the disqualification. In the absence of supporting evidence, the benefit of doubt was given to the assessee, and the clearances for 1988-89 qualified for exemption.

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Issues: Whether the assessee was entitled to exemption under Notification No. 175/86 notwithstanding the allegation that brand names of other persons were affixed on the goods.

Analysis: The exemption was available to a small scale unit manufacturing specified goods within the prescribed clearance limit. The disqualification in paragraph 7 could operate only if the manufacturer himself affixed the brand name or trade name of another person on the specified goods. On the record, there was no evidence of any arrangement by which the assessee affixed another person's brand name before clearance. The material indicated that the purchaser may have affixed its brand name after purchase, which did not attract the restriction in the notification. In the absence of supporting evidence, the benefit of doubt had to go to the assessee.

Conclusion: The assessee was eligible for exemption under Notification No. 175/86 for the clearances made during 1988-89.

Ratio Decidendi: The brand name restriction in an exemption notification applies only when the manufacturer himself affixes the brand name or trade name of another person on the goods before clearance.

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