Where brand name used on the manufactured products is owned by the manufacturer himself, the benefit of small scale exemption cannot be denied.

CCE vs. Otto Bilz (India) Pvt. Ltd [2015] 63 taxmann.com 317(SC)

Where brand name used on the manufactured products is owned by the manufacturer himself, the benefit of small scale exemption cannot be denied.

FACTS:

The assessee manufactured the products in India under foreign brand name and therefore,

the department contended that it is not eligible for benefit of small scale exemption under the excise law.

HELD:

The court observed that the foreign company had assigned the trademark in favor of the assessee with a right to use the said trademark in India exclusively .therefore the assessee used the trademark in its own right to use the said trademark in India exclusively therefore the assessee used the trade mark in its owned right as it owned the trade mark and therefore it cannot be said as use of trademark of another person so as to disentitle the benefit of small scale exemption notification.