Case Law Details
Mankoo Machine Tolls Pvt Limited Vs Commissioner of Central Excise (CESTAT Chandigarh)
Introduction: The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Chandigarh has made a significant ruling concerning Small Scale Industry (SSI) exemptions in the case of Mankoo Machine Tools Pvt. Ltd. Vs. Commissioner of Central Excise. This decision offers a crucial clarification on the eligibility of SSI exemptions where a family surname is used across multiple separate entities.
Analysis: The tribunal determined that the term “brand name” should indicate a connection between the owner and the product in the course of trade, irrespective of its registration status. In this particular case, the “Mankoo” surname was used as a brand across three separate entities within the same family, without any objections from any of the family members.
This ruling will likely be a significant point of reference for similar future disputes involving family-run businesses and the use of family names as brand names. It asserts that the use of a family surname across different entities does not equate to using a brand name that is not their own, hence SSI exemptions should not be denied.
This judgement aligns with a previous Apex Court ruling in the case of Pethe Brake Motors Pvt. Ltd., where it was observed that the use of a director’s surname does not fall under the exceptions for the benefit of SSI exemptions.
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