Branding+excise

This query is : Resolved

Jay V Mavani (Querist)
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11 January 2012 WE are currently a wholesale Trader, trading in various industrial Products.

Recently we have launched our in House brand X. Brand X is being manufactured by a SSI Unit whose aggregate turnover is less than 1.5 Cr annualy. He IS not paying excise as his turnover is less that 1.5 Cr.

Recently we have advised our manufacture that we wish to register our brand name i.e. get a TM further leading to R. Our manufacturer is currently advising us that we cannot register a brand being a trader instead he needs to register it as a manufacturer. Reason he is giving is, if he manufactures somone else's brand then he will have to pay excise.

My query is :

1) My intention behind registering my brand is to protect the brand name. If I register brand name under my business name and then the product is being manufactured by an SSI. Do I have to pay excise by default?? My understanding was SSI within limit of 1.5 CR need not pay excise.I have been told by manufacturer that as soon as u register for Trademark registration I will have to pay excise even if his turnover is less than 1.5 Cr.

2) What is the solution in this scenario ? I would like full control of my brand without having to pay excise.

3) Is there any procedure I need to do to 1) Get my brand name registered on my name and 2) Not come under excise ?? I dont want my brand name X to be registered on manufacturers name as he is not the actual owner, I am.

Your assistance in this matter would be highly recommended.

Regards

hanish

hanish (Expert)
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16 January 2012 Hi,

SSI exemption is not available to a manufacturer engaged in manufacture of goods which bear the Brand Name of any other person.

Way out - You could start manufacturing the goods. SSI exemption would be available in this case since you would be manufacturing goods which bear your own brand name and not any other person's brand name

hanish

hanish (Expert)
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