TaxTMI 
TaxTMI 
2009 (5) TMI 843
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.... a common order. The appellants M/s. Madras Cement Limited are the manufacturers of cement which is an excisable commodity. They availed the benefit of Notification No. 6/2002 dated 1-3-2002 as amended (Sl. No. 19). In terms of the condition No. 2(iii) stipulated in the said Notification, exemption was not applicable to the item viz., cement cleared with the brand name or trade name of another person. They were affixing words "RAMCO PRODUCT" in the local language viz., in Kannada on the HDPE bags which were used to pack the cements and they were selling the cement manufactured by them under their own Trade Mark "KARTHIC". Revenue proceeded against the appellants on the ground that the use of the words "RAMCO PRODUCT" would not entitle them ....
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....convey to the customers that the quality of their product is equivalent to that of Ramco Group of Industries. The assessee submitted that they used only their brand name "KARTHIC" but the Commissioner has stated that it is immaterial whether or not the assessee have been using the brand name "KARTHIC" and what is relevant and needs to be analyzed is whether they are using the brand name of other person or not. He has held that by writing "RAMCO PRODUCT" on the HDPE bags of cement, the appellant had used the brand name of others. He has also relied on the decision of the Apex Court in the case of CCE, Trichy v. M/s. Grasim Industries Ltd. (supra). In these circumstances, the Commissioner confirmed, the following demands and imposed penalties....
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....rd "RAMCO" is an integral part of their registered brand name and hence, a contradictory view cannot be taken merely for the reason that concessional rate was claimed for "KARTHIC" brand. (v) The valued customers in Karnataka are familiar with RAMCO CEMENT and "KARTHIC" being a brand name of the appellants, it was believed that the customers may be misled to conclude that "KARTHIC" brand name is from a different manufacturer and hence, they were required to print the words "RAMCO PRODUCT" in local language. The printing of the above words on the HDPE bags in Kannada language is more to emphasis and reassure their customers that the "KARTHIC" brand cement is that of the appellants. (vi) The Commissioner's finding in Para 9 of the impugned ....
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....a connection between the product i.e., cement and Grasim Industries. As a consequence, the Apex Court concluded that the respondents used the trade name of other company with the purpose of indicating a connection in the course of trade between the product and that person. In the present case, the brand name as declared to the Trade Authorities is also owned by the appellants and therefore, the clearance of cement under the brand name "KARTHIC" was fully in accordance with conditions stipulated in the Notification No. 6/2002. (ix) The imposition of penalty under Rule 25 to the differential duty is wholly illegal and is liable to be set aside. The affixing of brand name and incorporation of the words "RAMCO PRODUCT" in local language is kno....