Brand name assignment and retrospective trade mark record update support small scale exemption eligibility.

Small scale exemption under Notification No. 175/86 was available where the brand name had been assigned to the assessee before the exemption claim and the trade marks records reflected the transfer with retrospective effect. On that basis, the brand name was treated as belonging to the assessee at the relevant time and not to another person. The assignee of a brand name was therefore entitled to the notification benefit, and denial of the exemption was not justified.

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Issues: Whether the assessee was entitled to small scale exemption under Notification No. 175/86 when the brand name had been transferred to it before the claim and the transfer was reflected in the trade marks records with retrospective effect.

Analysis: The transfer of the brand name to the assessee had been completed prior to the period for which exemption was claimed. The records of the Trade Marks Registry also showed the transfer with retrospective effect. On that basis, the brand name belonged to the assessee at the relevant time and did not belong to another person. The claim to small scale exemption was therefore supported by the settled position that an assignee of a brand name is entitled to the benefit under the notification.

Conclusion: The assessee was entitled to the benefit of small scale exemption and the denial of exemption was not justified.

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