INDSWEP ENERGY SYSTEMS PVT. LTD. Vs. CCE, PUNE

JUDGEMENT

(1.) THE appellants are a Small Scale Unit engaged in the manufacture of Heat Exchangers.

(2.) They availed themselves of the benefit of small scale exemption for small scale unit under Notification No. 1/93, the impugned order has held that the appellants are not eligible for the exemption because they were using the brand name of another person, namely M/s. Swep International AB Sweden consequential duty demand, imposition of penalty etc. have also been made in the impugned order. The appellants have strongly contested the charge and have submitted that the availing of small scale exemption by them was not contrary to the provisions of Notification No. 1/93. It is their submission that specified goods became ineligible only if the brand name of another person was affixed on the goods. The appellants have pointed out that on the Heat Exchanger manufactured by them they had affixed their name plate indicating SWEP which stood for their own name only. The Logo of M/s. Swep International AB was entirely different. The; appellants have also produced a letter dated 4.10.1997 from Swep International AB stating that "the use of their logo and brand, in any other form, does not identify with Swep International AB and his product". As against the above contention of the appellants the impugned order has held that as the appellants were using the stationary with the logo of SWEP International AB and had also affixed manufacturers plate on which 'SWEP' was written, this was a case of affixing the brand name of another person on their products. We have heard the learned Counsel for the appellant and learned DR and have perused the records. It is clear that the plate affixed on the appellant heat exchanger only contained the word SWEP along with appellants name. This was again in respect of heat exchangers containing the heat plates imported from M/s. SWEP International AB Sweden. On the Heat Exchangers manufactured with plates imported from other supplier e.g. American plate manufacture the word SWEP was not affixed. Swep International AB have furnished details of their logo and brand as under: - -

(3.) THE records of the case make it clear that the appellants were not affixing the above logo (word SWEP with the pictorial representation of plate) on their heat exchangers. They were only writing the word SWEP on the plate. According to the owners of the brand name, this does not identify the product with them.