Purchase from SSI Unit, Central Excise

[kiran pai]

Dear Sirs,

A  leading brand name retail chain in India is purchasing excisable goods from the SSI.  Being a SSI unit the branded goods are send  to the retail chain godown with out duty paid.  Now can any one clarify that, if the retail chain store sold the said non dutiable goods purchased from the SSI unit to the customer as it is.  Is it necessary to pay the duty on the said goods which sold to the customer directly.

Thanks,

Kiran Pai  

Posts / Replies

[Alok Kumar]

dear Mr. Kiran Pai,

In the first place the benefit of SSI Exemption will be vailable to the said SSI unit only when the brand name is owned by the SSI UNIT .

In case the brand name is owned by some one else or by the  retail chain himself then the exemption from duty of excise will not be available to the SSI UNIT.

As mentioned in you query that nothing is done further on the said goods before selling the same to your cutomers , then in this situation no duty is required to be paid by you.

Thanks,

 

ALOK kumar

[pradeep khatri]

Dear Kiran,

 

Well if SSI unit is manufacturing on your behalf and using your brand on the manufactured goods then Excise duty will be applicable otherwise not.  Since while selling of goods there is no such activity involved, hence no requirement of paying the C.E. Duty.  Please also check the facts that whether Leading Brand retail chain is getting goods manufactured from SSI units with its own brand name or not?

Regards

 

Pradeep Khatri