2015 (10) TMI 1550

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.... and imposing penalty of Rs. 50,000/- under Rule 25 of the Central Excise Rules. 2. The issue in this case is the applicability of exemption under Notification No. 8/2003-CE on labels manufactured by the appellant bearing a brand name of their customers. The appellant sought benefit of exemption of SSI clearances under Notification No.8/2003. Initially, the exemption notification did not allow the benefit of small scale exemption to specified goods bearing a brand name or trade name, whether registered or not of another person in terms of para 4 of the notification . Brand name was defined under explanation to clause 5 of the Notification as under- (A) "brand name" or "trade name" means a brand name or a trade name, whether registered or ....

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....te a connection in the course of trade between the goods on which such labels are affixed and the brand name owner. Names printed on such metal labels are not brand name by themselves and as long as these metal labels are not affixed n such metal labels, etc. serves as brand name (within the definition of explanation vii) they are not hit by the mischief of the amending notification"...... 3.1 The learned Counsel showed an affidavit submitted to the Commissioner stating that they were manufacturing and supplying self adhesive labels/stickers and there is no clearance of labels/stickers which are not gummed. A confirmation from buyers was also shown stating that the buyers received self adhesive labels/stickers as per purchase orders and as....

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....er the specific requirement of the customers and the brand name which the small scale unit for further manufacture. Casting having such band name are not sold in the market as castings as such, because it will be or no use to another person. It is felt that when such castings are not "traded" but only sold to a particular manufacturer for his own use, the embossing of the brand name of the customer on the castings would not amount to using brand name so as to deny the benefit of Notification No. 1/93. Of course it is found that such branded casting are traded in the market as such, it will amount to use of such casting in the course of trade and the benefit of exemption notification will not be available. In other words, so long as the bran....