28 May 2014
Suppose there is a company X ltd. which is the owner of a brand name. Another company Y ltd. is using this brand name by paying royalty. Y ltd. is purchasing lubricating oil in container packed and labelled in name of Y ltd. with the brand name of X ltd. printed on the container from Z ltd. Y ltd. directly sells this container without any alteration. Lubricating oil is covered in Schedule III of Central Excise. So, my question is whether Y ltd. is liable to excise as it uses the brand name of another party under definition of deemed manufacture ? Y ltd. gives all the direction of packing to Z ltd. and it only sells the container and does not do any acitivity.
CAclubindia
