Small scale exemption allowed where imported components bore a foreign name but no third-party brand name was affixed on final goods.

Small scale exemption under Notification No. 1/93-C.E. was available because the disqualification applies only where the specified goods are manufactured under or with the brand name or trade name of another person. The assessee used imported components bearing a foreign manufacturer's name, but did not affix any brand name or trade name of another person on the final goods. On that basis, the denial of exemption was held unsustainable and relief was granted to the assessee.

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Issues: Whether the benefit of Small Scale Exemption under Notification No. 1/93-C.E. was available where the assessee manufactured the goods from imported components bearing the foreign manufacturer's name, but did not affix any brand name or trade name of another person.

Analysis: The exemption was denied on the premise that the goods were cleared under the brand name of a foreign manufacturer. The reasoning accepted that the relevant disqualification applies only when the specified goods are manufactured with the brand name or trade name of another person. On the facts recorded, the assessee was only using imported parts bearing the manufacturer's name and was not affixing any brand name or trade name of another person on the goods manufactured by it. The earlier Tribunal decision taking the same view was followed.

Conclusion: The assessee was entitled to the benefit of the Small Scale Exemption Notification.

Final Conclusion: The denial of exemption was unsustainable and the appeal succeeded, resulting in relief to the assessee.

Ratio Decidendi: The disqualification for small scale exemption applies only when the goods are manufactured under or with the brand name or trade name of another person; mere use of imported components bearing a foreign manufacturer's name does not by itself bar the exemption if no such brand name or trade name is affixed on the final goods.

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