SSI EXEMPTION - branded goods

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sanjay rastogi (Querist)
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22 August 2008 One of my friend's company manufactures electrical goods whose turnover is about 90 lacs .They are manufacturing goods in their own registered brand and other brands. For their own brand goods clearance they pay no excise but for other brands, they pay full excise.

A company has approached them to manufacture goods in their brand XX for which an application has been filed with the trademark, but the brand is still not yet registered.They are willing to license/assign/NOC the brand XX to my friends company for manufacure of goods in XX brand.

Pls let me know whether is it possible to clear the goods for my friend in XX brand without payment of duty till 1.5 cr.?? If possible,Pls give some notification/judgements/circular or some suggested reading/web address for better understanding.

Thanks.

sanjay rastogi

sanjay rastogi (Querist)
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22 August 2008

sanjay rastogi

sanjay rastogi (Querist)
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25 August 2008

santosh k singh

santosh k singh (Expert)
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03 November 2008 Dear Sanjay,
As you are already aware that for producing goods using other's brand name you have to pay the duty. As I understand that you want to know that wether unregistered brand is considered for this puppose or not.Under the excise law the SSI unit has to pay the duty if it uses the brand name of others, it does not matter wether the brand is registered or not , becouse the defination opf brand name clearly states that it need not necessarily be a registered one. Accourdingly if you use the brand name of other even if it is not registered or in the process of registration you have to pay the duty.

Regards,
CA Santosh K. Singh

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