TaxTMI 
TaxTMI 
2008 (7) TMI 194
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....-99 and 1999-2000). The said brand name belonged to a foreign company, with whom the respondents had entered into "KNOW-HOW AND TECHNICAL ASSISTANCE AGREEMENT" dated 3-9-1996 for the purpose of obtaining intellectual property rights for the manufacture, distribution and sale of certain products in India. During the above period, the respondents had affixed the above brand name to the licensed products manufactured and marketed in India. They claimed SSI benefit and hence did not pay duty of excise on such clearances. The department demanded the duty by invoking paragraph 4 of the above Notification No. 9/98-C.E. and the corresponding para of the successor-notification. These provisions of the notifications were to the effect that SSI benefi....
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....prohibited, under the agreement, from applying for registration of the trade mark; that what 'as granted under the agreement to the assessee was only the right to use the trade mark/brand name in India and that such grant could not be termed "assignment" as claimed by the assessee. The learned JCDR has also adverted to the assessee's plea of limitation. It is submitted that, in their declaration filed under Rule 173B of the Central Excise Rules, 1944, the respondents declared that they would be clearing their products under their own brand name. The fact that they would be clearing their goods under a brand name belonging to a foreign company was not disclosed to the department, which omission, according to the learned JCDR, amounted to sup....
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....ensee (respondent herein) the exclusive right to apply the trade marks to the products manufactured in the territory pursuant to the agreement. Obviously, the learned Commissioner (Appeals) misread the provision. He thought that the right given to the licensee was to apply for registration of trade marks in India. Under clause 10.1 of the agreement, the licensee acknowledged the ownership of the licensor (foreign company) on the trade marks. The provision of the agreement also forbade use of the trade marks, "save as provided hereinafter", with the prior consent and approval of the licensor. As we have already noted, the exclusive right of the licensee to use the trade marks in India was provided for elsewhere in the agreement. The question....