COMMISSIONER OF CENTRAL EXCISE, TRICHY versus M/S. GRASIM INDUSTRIES LTD.

COMMISSIONER OF CENTRAL EXCISE, TRICHY versus M/S. GRASIM INDUSTRIES LTD.

Assessees who use the name of another company to indicate a trade connection are not entitled to exemption under Notification No. 5/98-CE dated 2-6-1998, as the explanation includes any name or writing used to show such a connection. Using the holding company's name on cement bags shows such a connection and disentitles them from the benefit of the notification.

Parties
Appellant: Commissioner of Central Excise, Trichy; Respondent: M/s Grasim Industries Ltd.
Jurisdiction
India
Judgment Date
12 April 2005
Procedural Posture
Civil Appeal / Appeal Against Order of Customs, Excise and Gold (control) Appellate Tribunal, Chennai
Outcome
Appeal allowed in part; Tribunal order set aside; Commissioner order restored (except penalty).
Legal Topics
Exemption Notification, Brand Name, Trade Name, Penalty
Taxation Central Excise Exemption Notification Brand Name Trade Name Penalty

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Commissioner of Central Excise, Trichy

Appellant

M/s Grasim Industries Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal Against Order of Customs, Excise and Gold (control) Appellate Tribunal, Chennai

Legal Issues

  1. 1 Whether use of holding company's name on cement bags disentitles assessee from benefit under Exemption Notification No. 5/98-CE dated 2-6-1998
  2. 2 Whether the words 'brand name' or 'trade name' in the notification includes use of company name for indicating connection in trade
  3. 3 Whether penalty under Rule 173Q of Central Excise Rules, 1944 should be imposed

Ratio Decidendi

Assessees who use the name of another company to indicate a trade connection are not entitled to exemption under Notification No. 5/98-CE dated 2-6-1998, as the explanation includes any name or writing used to show such a connection. Using the holding company's name on cement bags shows such a connection and disentitles them from the benefit of the notification.

Court Disposition

Appeal allowed in part; Tribunal order set aside; Commissioner order restored (except penalty).

Orders

  • Impugned Tribunal judgment set aside.
  • Order of Commissioner of Central Excise dated 19 May 1999 restored except penalty.