SSI Branding in Central excise

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CA. Ahammed Sha.E.C.

Chartered Accountant

24 Points Joined March 2008

if a person is manufacturing a product using a branded product and gives with name plate that " made from _____ product ", will it be eligible for ssi exemption..??

in this case a person is manufacturing barbed wires out of tata steel products called as tata wiron. He puts on this name tag that "Made out of tata wiron". Now the question is that will he be denied from claiming exemption for excise duty under small scale industry option for using the brand name of another person....??? can he claim the exemption....???

Please clarify as early as possible....

Replies (3)

CA Amit Kumar

C.A. CWA Final

251 Points Joined July 2008

Dear Ahmed

if a person is manufacturing a product using a branded product and gives with name plate that " made from _____ product ", will not be eligible for ssi exemption..??

SSI wil have to pay tax on manufacuring.

CA Amit Kumar

C.A. CWA Final

251 Points Joined July 2008

u can have an overview of the following cas law

Whether brand/trade name has been used on SIMILAR or DIS-SIMILAR KIND of goods [RUKMANI PAKKWELL - 2004 – SC];

E.g.

ð Footwear mfd and cleared – bearing brand name “lotus” – “Lotus” brand name owned by Another Person who is using them in relation to “Detergent Powder” ----- “Brand Name will indicate connection between “goods manufactured by SSI Unit” and “Another Person” [it is not the condition that it shall indicate connection between “goods manufactured by SSI Unit” and “Goods mfd by such Another Person”] --- thus, Exemption will not be available