SSI exemption denied where contemporaneous evidence showed branded clearances under "Kemolit S-3" during the relevant period.

Contemporaneous evidence showed that the goods were marketed under the brand name "Kemolit S-3" during the relevant period, including an authorised signatory's admission and direction slips instructing discontinuance of the brand name on bags. On that basis, the clearances were treated as branded goods, so the small scale industry exemption for unbranded clearances was not available for that period. The later discontinuance of the brand name did not affect liability for the earlier clearances, and the duty and penalty were sustained.

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Issues: Whether the assessee was entitled to small scale industry exemption where the goods were found to have been marketed under the brand name "Kemolit S-3".

Analysis: The record showed that the assessee's authorised signatory admitted that the brand name "Kemolit S-3" had been affixed on the goods up to 1 June 1991. Direction slips recovered from the factory further indicated that the Head Office instructed the unit to discontinue writing the brand name on the bags. These materials supported the finding that the goods were cleared as branded goods during the relevant period, and the subsequent discontinuance of the practice did not affect the liability for the earlier period.

Conclusion: The assessee was not entitled to the SSI exemption for the relevant period, and the finding of branded clearance was upheld.

Final Conclusion: The appeal failed and the order confirming duty and penalty was sustained.

Ratio Decidendi: Where contemporaneous evidence establishes that goods were marketed under a brand name during the relevant period, the exemption available to unbranded SSI clearances is not attracted.

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