2017 (8) TMI 62

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....entral Excise, for the year 2000-01 to 2004-05, it was observed that apart from clearing goods to other buyers the appellants was supplying goods to M/s. Spark Electrodes Pvt. Ltd., Sahibabad (SEPL). The appellants had cleared goods to SEPL by declaring the same as branded as well as unbranded goods. On further enquiry, it was observed that the appellants and SEPL have common Directors and both units appeared to fall within the definition of related person under Section 4 of the Central Excise Act, 1944(the Act). The appellants during the material period did not include the value of clearances of goods declared as branded goods cleared to related person to arrive at aggregate value of clearances for computing eligibility for SSI exemption u....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ttract brand name clause. The Department's argument is based on the Board Circular dt. 27.10.1994 in the context of castings. We find that Ld. Commissioner (Appeals) has correctly analysed the Circular dt. 27.10.1994 in following paragraphs:- "I have seen the Board's Circular supra. I find that the Board's Circular specifically deals with the castings as it has been clarified that the castings having such brand name are not sold in the market as such they are not of any use to another person. It can therefore be clearly said that this Board's Circular covers only casting which are sold only to a particular manufacturer for his own use and not the pipes and tubes manufactured by the appellants which SEPL has claimed to have ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ause 4 provides in catagoric terms that the exemption is lost if the goods bear the brand/trade name of another. Clause 4 does not state that the exception is lost only in respect of such goods as reach the market. It does not carve out an exception for goods manufactured for captive consumption. The framers meant what they provided. The exemption was to be available only to goods which did not bear a brand/trade names were to permitted on goods manufactured as per orders of customers or which are to be captively consumed then manufacturers, who are otherwise not entitled to exemption, would get their goods or some inputs manufactured on job work basis or through some small party, freely use their brand/trade name on the goods and avail of ....