2014 (12) TMI 238

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....tion no.175/86-CE. The departmental officers visited the appellant's unit and found that they are using brand name 'Precitex' on their goods and hence, in terms of clause 7 of the exemption notification, they would not be eligible for SSI exemption, as the brand name 'Precitex' belonged to M/s. Precision Rubber Industries Pvt. Ltd. Bombay (hereinafter referred to as PRIPL). It is on this basis that after issue of show cause notice, the Joint Commissioner vide order-in-original dated 23.12.2004 confirmed the duty demand of Rs. 15,56,112/- against the respondent and besides this, imposed penalty of Rs. 2 Lakhs under Rule 173 Q of the Central Excise Rules, 1944. In course of proceedings before the Joint Commissioner, the respondent pleaded tha....

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....oods being manufactured by the respondent unit as well as by PRIPL, Bombay- Aprons and cots of rubber are textile machinery, that the Tribunal in respect of the Bangalore Unit of PRIPL vide order-in-appeal dated 9.3.98 had held that the classification of synthetics Aprons and cots has to be made under heading no.84.48, that in view of this, the goods manufactured by PRIPL, Bombay would not be exempted goods and hence, during the period of dispute, PRIPL would not be eligible for SSI exemption and on this basis, the respondent unit using the brand name of PRIPL would not be eligible for SSI exemption. He also pleaded that the finding of the Commissioner (Appeals) that the brand name 'Precitex' used by the respondent is different, as the same....

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....ended the impugned order by reiterating the findings of the Commissioner (Appeals) and emphasized that during the period of dispute, in terms of the clause 7 of SSI exemption Notification no.175/86-CE, the benefit of this exemption would be denied to the assessee using the brand name of another manufacturer only if the manufacturer owning the brand name was not eligible for SSI exemption, that in this case, the respondent were using the brand name 'Precitex' of PRIPL, Bombay, that during the period of dispute, PRIPL though registered as small scale industry with the Directorate of Industries, were not availing of SSI exemption, as the goods manufactured by them  synthetic rubber Aprons and cots, had been classified by the Asstt. Commis....

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....e brand name by a SSI unit, which is similar to the brand name used by some other person or is a part of the brand name of another person would debar him from the benefit of the SSI exemption. However, during the period of dispute, in a case where a small scale unit used the brand name of another manufacturer, the benefit of SSI exemption could be denied to that unit only if the brand name owner was not eligible for the SSI exemption. In this case, there is no dispute about the fact that the brand name owner - M/s PRIPL, Bombay was registered with the Directorate of Industries as a small scale unit. However, during that period, that unit was not availing SSI exemption for the reason that its product had been classified by the Assistant Comm....