SAMARTH INDUSTRIES Vs. CCE, BELGAUM

JUDGEMENT

(1.) THE appellants are manufacturer or diesel generating sets falling under Chapter Heading 8502 of Central Excise Tariff Act, 1985. They purchased oil engines from M/s. Kirloskar Oil Engines Ltd., Pune (hereinafter referred to as KOEL) and alternators from M/s. Kirloskar Electric Co. Ltd., Hubli (hereinafter referred to as KECL). They assembled DG sets, which comprise of oil engines, alternators, battery, battery charger, electric control panels, base plate on which the DG set is mounted, etc. They were not affixing any brand name on the DG sets and were availing benefit of exemption from duty under Notfn. No. 1/93 -CE dt. 28.2.93 and concessional rate of duty under Notfn. No. 9/98 -CE dt. 2.6.98 and 9/99 -CE dt. 28.2.99 by declaring that their specified goods did not bear any branch name. Show Cause Notice was issued to them that they have used the brand name/trade name "Kirloskar" for marketing the DG sets manufactured/assembled by them. The word "Kirloskar" used in the trade was not required to be affixed on the DG set again for the purpose of inadmissibility of the aforesaid Notifications because as per the provisions of the said Notification, the exemption was not available to the goods bearing a brand name/trade name. As long as the DG sets were bearing the trade name of "Kirloskar" whether as the original fixture of the main components of the DG sets or otherwise, the benefit of the exemption Notifications was not admissible if they were known in the market as Kirloskar DG sets and were marketed as DG sets bearing the trade name of Kirloskar. The Commissioner in the impugned order confirmed the duty demanded for the period from 1.4.96 to 31.12.99 amounting to Rs. 20,71,069/ - and imposed an equivalent penalty under Sec. 11AC read with Rule 173Q and demanded interest under Sec. 11AB.

(2.) SHRI M.S. Nagaraj, Advocate appeared for the appellants and Shri B.R. Jagadish, JDR appeared for the Revenue.

(3.) THE exemption contained in this Notification shall not apply to the specified goods, bearing a brand name or trade name (registered or not) of another person.