MAHESH TEXTURISERS Vs. COMMISSIONER OF CENTRAL EXCISE, SURAT

JUDGEMENT

(1.) ALL the appeals are being disposed by a common order as the issue involved is identical.

(2.) VIDE impugned orders, the benefit of small scale exemption Notification No. 1/93 stands denied to the appellants, who are engaged in the texturising of yarn, on the ground that they have used the brand name of other persons, who have sent them POY for texturising, thus disentitling them from the benefit of the said notification. It is seen that the appellants have taken a categorical stand before the authorities below that they received the POY from various units in cartons, which already carry the brand name. POY received by them was wound on paper tubes, which did not carry any brand name and after texturising they used the same cartons for packing the texturised yarn and cleared the same to the principal manufacturer, who after re -packed either sold the same in the market or sent the same further for twisting to other manufacturers. They also contended that there was a general practice in the texturising industry to re -use the cartons received from the POY manufacturers and the packing slips of the manufacturers are either pasted on the outside of the cartons or kept in the cartons only with the purpose to identify as to whom the goods belong, inasmuch as they received yarn for texturising purposes from various manufacturers.

(3.) WHILE dealing with the above contentions, the adjudicating authority has observed that it is a general practice that texturisers used the second -hand cartons for packing the texturised yarn manufactured by them. The adjudicating authority has further observed that the goods are not physically available so as to find out whether such brand name was actually affixed or not, but has gone by the statements of various persons stating that packing slips were affixed on the outside of the cartons. As such, he has held that the said packing slips amounts to use of brand name on the goods thus disentitling them from the benefit of the notification. Accordingly, he has confirmed the demands.