Supreme court upheld CESTAT decision of disallowing SSI exemption for using brand name

No Comments

SC finds no merit in assessee’s appeal challenging CESTAT decision which disallowed SSI exemption under Notification No. 8/2000-CE for use of brand name belonging to group entity; Although assessee claimed that the impugned name was only a household name used by group entities, CESTAT observed that same qualified as “brand name” in terms of the definition cited in SC ruling in Bhalla Enterprises;

According to CESTAT, registration of brand name was not relevant for purpose of consideration of availability of exemption under said Notification; In present case, since the brand name had been used by Group entity, benefit could not be extended to assessee; CESTAT also distinguished Apex Court decisions cited by assessee viz. in case of Astra Pharmaceuticals (P) Ltd, Tarai Food Ltd and Stangen Immuno Diagnostics as they dealt with medicines or food items where the issue pertained to classification.

[Citation: TS-356-SC-2017-EXC]