TaxTMI 
TaxTMI 
2024 (10) TMI 325
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....Appeals) affirmed the view of the Adjudicating Authority that the appellant is not entitled to SSI exemption in terms of Notification No.8/2003-CE dated 01.03.2003 The Notification and hence the excise duty is recoverable along with interest and penalty, invoking the larger period of limitation. 2. The appellant is engaged in the manufacture of "HDPE Pipes" and had declared the "Principal Place of Business" as By-pass Choraya, Bhuwana, Udaipur and Additional Place of Business as Village-Lal-Madari, Tehsil-Nathdwara, Distt-Rajsamand. It appears that the appellant manufactured the goods by using the brand name of "NOBLE" "FITWELL" and "ZINDAL" and cleared the same without payment of central excise duty by wrongly claiming the benefit of SS....
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.... of the Act along with interest and penalty under Section 11A and 11AC of the Act. The Adjudicating Authority vide order-in-original dated 30.11.2021 confirmed the demand. Being aggrieved, the appellant preferred an appeal, which has been dismissed by the impugned order. The present appeal has been filed before this Tribunal. 4. Heard Shri Pradeep Jain, Chartered Accountant for the appellant and Shri Bhagwat Dayal, Authorised Representative for the respondent. 5. The main contention of the learned counsel for the appellant is that the SSI exemption is available to them even if the goods are manufactured under the brand name as they are manufactured in a rural area and, therefore, are covered under Para 4(c) of the Notification. Accord....
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....ion in terms of Para-4. 7. The basic question involved is whether the benefit of SSI exemption notification no.8/2003-CE dated 1.3.2003 is available to the appellant. As per the said notification, small scale industries are allowed exemption in certain circumstances enumerated therein. To appreciate the issue, it is necessary to quote the relevant provisions of the notification as under:- "4. The exemption contained in this notification shall not apply to specified goods bearing a brand name or trade name, whether registered or not, of another person, except in the following cases: (a) where the specified goods, being in the nature of components or parts of any machinery or equipment or appliances, are cleared for use a....
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....and name they bear.] Explanation.- For the purposes of this notification, (A) "brand name" or "trade name" means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person; (B) where the specified goods manufactured by a manufacturer bear a brand name or trade name, whether registered or not, of another manufacturer or trader, such specified goods s....
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....f they are bearing the brand name or trade name of these entities, they shall still be entitled to the exemption under the notification. The exception under Para-4(c) grants exemption to the specified goods if they are manufactured in a factory located in a rural area. The clause is clear and simple that if the goods are manufactured in a rural area, even if they are bearing the brand name or trade name shall be entitled to exemption. The distinction in the two clauses i.e. clause (b) and (c) is that the clause (b) restricts the applicability of the exception to the goods manufactured for the entities specified therein, whereas exception under clause(c) is area based i.e. goods manufactured in a factory located in „rural area‟ o....
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....h is not permissible to be done in law. The relevant para-6 of the aforementioned decision is as under:- "It is settled law that Exemption Notifications have to be strictly construed. They must be interpreted on their own wording. Wordings of some other Notification are of no benefit in construing a particular Notification. Clause 4 of this Notification and the explanation (set out hereinabove) make it clear that the exemption will not apply if the specified goods (i.e. scented supari) bears a brand or trade name of another person. Neither in clause 4 of the Notification nor in Explanation IX is it provided that the specified goods must be the same or similar to the goods for which the brand name or trade name is registered. The Tr....