Embossing Customer Name On Goods Not Amount To ‘Branding’ If Goods Are Not Sold By Customers: CESTAT Deletes 1% Excise Duty

[03 March 2022] The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) while deleting the 1% of Excise Duty, held that embossing customer name on goods does not amount to ‘Branding’ if goods are not sold by customers.
The two member bench consisting Sulekha Beevi C.S. (Judicial Member) and P.Anjani Kumar (Technical Member) has noted that as long as the goods are not sold by the customers of the appellant/assessee in the brand name which they are manufactured, the same cannot be held bearing brand name making them dutiable.
The tribunal found that though the appellants have inscribed/embossed the name of the customers as well as Govt. of Tamil Nadu and Chettinad Cements Corporation Pvt. Ltd., it could not be said to be a “brand‟ used in connection of trade and commerce engaged by the person.