In Brief
Jute mills manufacturing bags for the Food Corporation of India and State Governments under the Public Distribution System were denied excise exemption for printing buyers' names and logos on the bags, with the Revenue treating this as use of "brand name". The Supreme Court held that merely affixing statutory markings required by the Jute Commissioner for identification and monitoring purposes does not constitute a "brand name" under excise law. A brand name requires intention to indicate a commercial trade connection; compulsory government-mandated markings serve only administrative purposes and do not enhance commercial value. The Court set aside the assessment and reinstated exemption, distinguishing the case from Kohinoor Elastics where the customer wanted the brand name affixed for commercial purposes.
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