Charkha Detergents and Soap Vs. C.C.E.

Charkha Detergents and Soap vs C.C.E.

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Nov 07, 2000

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Citation: sooperkanoon.com/19681
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Decided On: Nov 07, 2000
Subject: Service Tax

Case Summary

AI-generated summary - not the official court judgment text.

Service Tax

Key legal issue: Service Tax

Parties & Advocates

Appellant / Petitioner

Charkha Detergents and Soap

Respondent

C.C.E.

Legal References

Reported In: (2001)(128)ELT140TriDel

Excerpt

.....by m/s. charkha detergents & soap enterprises pvt. ltd. for waiver of predeposit of central excise duty amounting to rs. 1,64,471/- confirmed under the impugned order.2. shri m. ganeshan, learned advocate, submitted that the applicants manufacture washing powder, detergent cake etc. which is being sold by them under the brand name 'farishta'; that the brand name 'farishta' was registered in 1977 with trade mark authorities in the name of m/s.charkha soap mills; that under a deed of assignment of trade mark charkha soap mills has assigned the brand charkha on 16-8-1993 to the applicants for exclusive use in certain territorial areas; that by another deed of assignment, charkha soap mills assigned the exclusive right and benefit of registered trade mark 'farishta' along with goodwill of the business to the applicants; that the jt. registrar of trade mark had assigned the trade mark to them w.e.f. 16-8-1993 under certificate dated 14-6-1995; that the dy. commissioner has demanded the duty in respect of goods cleared by them during the period 1-4-1995 to 8-6-1995 holding that as the date of registration is 9-6-1995 they could be considered to be eligible for exemption under notification no.1/93-c.e. from that date only and for the period prior to 9-6-1995 they were not eligible for the exemption as during that period the trade mark 'farishta' belonged exclusively to charkha soap mills. learned advocate contended that as the department itself has treated the trade name 'farishta' belonging to them w.e.f. the date of certificate, the benefit of notification no. 1/93 could not be denied as the certificate is effective from 16-8-1993 itself.3. dr. d.k. verma, learned sdr, opposed the prayer submitting that the certificate will be effective only from the date it was given by the trade mark authorities and not for the earlier period and reliance was placed on the decision of the tribunal in the case of opus india v.cce, 1992 (62) e.l.t. 447 wherein it was held that.....

Full Judgment

1. This is an application filed by M/s. Charkha Detergents & Soap Enterprises Pvt. Ltd. for waiver of predeposit of central excise duty amounting to Rs. 1,64,471/- confirmed under the impugned order.

2. Shri M. Ganeshan, learned Advocate, submitted that the applicants manufacture Washing Powder, Detergent cake etc. which is being sold by them under the brand name 'Farishta'; that the brand name 'Farishta' was registered in 1977 with trade mark authorities in the name of M/s.

Charkha Soap Mills; that under a Deed of Assignment of Trade Mark Charkha Soap Mills has assigned the brand Charkha on 16-8-1993 to the applicants for exclusive use in certain territorial areas; that by another Deed of Assignment, Charkha Soap Mills assigned the exclusive right and benefit of registered trade mark 'Farishta' along with goodwill of the business to the applicants; that the Jt. Registrar of Trade Mark had assigned the trade mark to them w.e.f. 16-8-1993 under certificate dated 14-6-1995; that the Dy. Commissioner has demanded the duty in respect of goods cleared by them during the period 1-4-1995 to 8-6-1995 holding that as the date of registration is 9-6-1995 they could be considered to be eligible for exemption under Notification No.1/93-C.E. from that date only and for the period prior to 9-6-1995 they were not eligible for the exemption as during that period the trade mark 'Farishta' belonged exclusively to Charkha Soap Mills. Learned Advocate contended that as the department itself has treated the trade name 'Farishta' belonging to them w.e.f. the date of certificate, the benefit of Notification No. 1/93 could not be denied as the certificate is effective from 16-8-1993 itself.

3. Dr. D.K. Verma, learned SDR, opposed the prayer submitting that the certificate will be effective only from the date it was given by the trade mark authorities and not for the earlier period and reliance was placed on the decision of the Tribunal in the case of Opus India v.CCE, 1992 (62) E.L.T. 447 wherein it was held that registration has to be taken from the date the registration was granted.

4. We have considered the submissions of both the sides. The main issue involved, as to whether the brand name 'Farishta' can be used by the applicants from 16-8-1993 can be decided only after hearing both the sides in detail on merits. For the purpose of considering waiver of pre-deposit we find that it is not disputed that trade mark 'Farishta' is owned by M/s. Charkha Soap Mills which has assigned the same to the applicants in respect of specified territories only. Prima facie mischief of para 4 of Notification No. 1/93-C.E., dated 28-2-1993 is attracted. In view of this it is not a fit case for grant of total waiver of pre-deposit of the duty demanded. The applicants have also not pleaded financial hardship. We, therefore, direct them to deposit an amount of Rs. 40,000/- towards duty within 6 weeks from today. On complying with this direction there will be waiver of pre-deposit of remaining amount of duty and the recovery of the same is stayed during the pendency of the appeal. The matter will come up for reporting compliance on 18-12-2000.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Charkha Detergents and Soap vs C.C.E. Same Subject Service Tax