Brand name use for SSI exemption denied where inscription merely identified the owner and goods were for captive consumption.

Engraving "Indian Railways" on a product name plate did not amount to use of a brand name for denying small scale industry exemption under Notification No. 175/86. The inscription was treated as only an identifying mark showing the owner of the equipment, not a trade mark or brand name, and the goods were manufactured for captive consumption rather than marketed in trade. On that basis, the denial of SSI exemption was unsustainable and the impugned order was set aside with consequential relief.

---

---

Issues: Whether engraving the words "Indian Railways" on the product name plate constituted use of a brand name so as to deny small scale industry exemption under Notification No. 175/86 dated 1-3-1986.

Analysis: The words engraved on the goods were held to indicate only the owner of the equipment and not to serve as a trade mark or brand name. The goods were manufactured for captive consumption by Indian Railways and were not marketed in trade. The principle applied was that a mere monograph or short identifying expression does not, by itself, constitute a brand name, and the absence of trading use made the claim for denial of exemption even weaker.

Conclusion: The engraving of "Indian Railways" did not amount to use of a brand name, and the denial of SSI exemption was unsustainable.

Final Conclusion: The exemption could not be denied on the ground of brand-name use, and the impugned order was set aside with consequential relief.

Ratio Decidendi: An identifying inscription that merely denotes the owner of goods manufactured for captive consumption, and not for trade, does not constitute use of a brand name for the purpose of denying SSI exemption.

---