SSI Exemption Allowable Only After Registration of Trade Mark or Brand Name in the Name of Manufacturer: CESTAT [Read Order]

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Small Scale Industry (SSI) exemption is allowable only after the regulation of the mark or brand name in the name of the manufacturer or the assessee. 

Kalki Industries, the appellant assessee was a manufacturer of ‘electrical accessories’ and ‘lighting accessories’, and availing the benefit of notification intended for ‘small scale industry. 

The assessee appealed against the order passed by the Commissioner of Central Excise (Appeals) for confirming the duties of central excise amounting to Rs.9,73,258 on clearance excisable goods under section 11A of Central Excise Act, 1944, along with interest as applicable under section 11AA of Central Excise Act and imposition of penalty under section 11AC of Central Excise Act. 

S P Sheth, the counsel for the assessee contended that in the case of CCE Ahmedabad v. Vikshara Trading and Invest. Pvt. Ltd, the court held that when there was an assignment of Trademark in favor of other person, the benefit of small-scale notification cannot be denied and the trademark need not necessarily be in respect of all the goods and it was permissible in law to have the same brand name for different classes of goods owned by different persons. 

P.K Acharya, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was not eligible for the SSI Exemption under the prescribed law and liable to be sustained. 

The Bench observed that unless a trademark or Brand Name was registered in the name of the assessee, he was not entitled to the benefit of SSI exemption notification. 

The two-member bench comprising Ajay Sharma (Judicial) and C J Mathew (Technical) held that the assessee was eligible for the small-scale industrial exemption. 

To Read the full text of the Order CLICK HERE

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