Custom, Excise & Service Tax Tribunal
C.C.E.& S.Tax, Indore vs Sanjay Agrawal, M.D on 18 October, 2016
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Block No.2, R.K.Puram, New Delhi COURT-I Date of hearing: 18.10.2016 Date of decision: 18.10.2016 Central Excise Appeal No.55596 of2013 Arising out of the order-in-appeal No.IND/CEX/000/APP/185, 186/12 dated 12.7.2012 passed by the Commissioner (Appeals ), Customs , Central Excise and Service Tax, Indore.. C.C.E.& S.Tax, Indore .. Appellant Vs. Sanjay Agrawal, M.D. .. Respondents
Appearance:
Present Shri Yogeseh Agarwal, A.R. for the appellant/Revenue None for the respondents Coram: Honble Mr. Justice (Dr.) Satish Chandra, President Honble Mr. B. Ravichandran , Technical Member Final Order No.54862/2016 Per B. Ravichandran:
The Revenue filed this appeal against the order dated 12.7.2012 of Commissioner (Appeals), Indore.
2. The brief facts of the case are that M/s Naughty Foods Pvt. Ltd. are engaged in the manufacture of candy, lollipop etc. with brand name Naughty. The officers of the Central Excise Intelligence conducted certain verification in the premises of the respondents unit in March, 2010. On conclusion of the investigation, proceedings were initiated to demand duty of Central Excise and impose penalty on th the respondent. The original authority confirmed the duty of Rs.12,39,758/- on M/s Naughty Foods Pvt. Ltd. and imposed equal amount of penalty. Further, penalty of equivalent amount was also imposed under Rule 25 of the Central Excise Rules, 2002. Penalty of Rs.1 lakh has been imposed on Shri Sanjay Agrawal, Managing Director of M/s Naughty Foods Pvt. Ltd. On appeal, the Commissioner (Appeals) vide his impugned order set aside the original order. Aggrieved by this order, Revenue filed this appeal.
3. We have heard the ld. A.R. for Revenue. None appeared on behalf of the respondent. In the appeal, the Revenue contended that M/s Naughty Foods started working in 1997 and are manufacturing confectionary items with brand name Naughty since 2003. Another unit of M/s Naughty Foods Pvt. Ltd started in the month of February 2008 which made confectionary items with brand name Naughty, which is excisable product manufactured with brand name of another person and is not eligible for SSI exemption. It is contended that M/s Naughty Foods Pvt. Ltd., Indore used the trade name Naughty during period from February 2008 and as such they are not eligible for SSI exemption. The Department relied upon various decided cases.
4. We note that the brand name Naughty is in the name of Shri Sanjay Agrawal, one of the Directors of M/s Naughty Foods Pvt. Ltd. The said brand name was registered as manufacturer and merchant in the name of Sanjay Agrawal. He was using the above brand name earlier as proprietor of M/s Naughty Foods. The Commissioner (Appeals) recorded that Shri Sanjay Agrawal being owner of the brand name has used the said brand name in respect of the goods manufactured in the unit in which he was Managing Director. The first appellate authority relied on the decision of the Tribunal in Anil Pumps (P) Ltd. vs. C.C.E., Panchkula 2005 (180) ELT 500 and Bothara Agro Equipments P. Ltd. vs. C.C.E., Aurangabad 2007 (214) ELT 121 (Tri-Mum.). It was also noted that the original authority did not follow these rulings only on the ground that the appeal against the said orders are pending. We find that ratio of the Tribunals decisions as above has been correctly adopted in the impugned order. As such, we find no merit in the appeal filed by Revenue. The same is dismissed.
(Pronounced in open Court on 2016)
(Justice Dr. Satish Chandra)
President
(B. Ravichandran)
Technical Member
scd/
Appeal No.E/55596/2013
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