Brand name exemption denied for goods bearing another person's mark, even when the mark was temporarily concealed.

Small scale exemption under Notification No. 175/86-C.E. was unavailable where radio cassette recorders bore the brand name of another person not eligible for the benefit. Temporary concealment of the embossed foreign brand names on the cabinets and components did not alter the character of the goods for notification purposes. The larger bench ruling on brand-name use applied, and the contrary view relied on by the assessee was treated as no longer good law. The denial of exemption was therefore sustained, along with the duty demand, penalty, and confiscation order.

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Issues: Whether the assessee was entitled to small scale exemption under Notification No. 175/86-C.E. when the radio cassette recorders cleared by it bore the brand names of another person, though those names had been temporarily concealed by tape.

Analysis: The goods were assembled and cleared with foreign brand names already embossed on the imported cabinets and components. The temporary concealment of those brand names did not change the character of the goods for the purpose of the notification. The larger bench ruling on brand-name use governed the issue and excluded exemption where specified goods were affixed with the brand name or trade name of a person not eligible to the benefit of the notification. The contrary view relied upon by the assessee was treated as no longer good law.

Conclusion: The assessee was not entitled to the benefit of Notification No. 175/86-C.E., and the denial of exemption was upheld.

Final Conclusion: The duty demand, penalty, and confiscation order were sustained, and the appeal failed.

Ratio Decidendi: Small scale exemption is unavailable where the specified goods bear the brand name or trade name of another person who is not eligible for the exemption, even if the mark is temporarily concealed.

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