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January 2016

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

By Puloma Dalal
Jayesh Gogri
Mandar Telang Chartered Accountants
Reading Time 1 mins
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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 favour of the assessee with a right to use the said trademark in India exclusively. Therefore, the assessee used the trademark in its own right as it owned the trademark and therefore, it cannot be said as use of trademark of ‘another person’ so as to disentitle the benefit of small scale exemption notification.

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