Liable to excise or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 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

Arun Kumar Singh

Arun Kumar Singh (Expert)
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19 May 2014 The principle manufacturer is liable to pay excise duty if they are manufacturing other brand name. SSI exemption will not be available to principle manufacturer.

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2014 In this case then who is the principle manufacturer

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