In Brief
Jute textile manufacturers supplied branded jute bags to government food distribution agencies under compulsory markings specified by the Jute Commissioner. The revenue denied excise duty exemption (2011-13), arguing that buyer names and logos on bags constituted 'brand names' under the exemption notification. The Supreme Court allowed the appeal, holding that compulsory governmental markings for identification do not meet the legal definition of 'brand name', which requires intent to indicate a commercial trade connection. Since no such commercial purpose existed, the jute bags remained exempt from excise duty. The Court distinguished Kohinoor Elastics and upheld the binding authority of the Finance Ministry's clarifying circular.
The lawyer headnote and full judgment text are available to registered users.