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BRANDED CLARIFICATION REG., Central Excise |
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BRANDED CLARIFICATION REG. |
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My client manufacturing of various types of carry bag (casual uses) for corporate sector i.e. KFC, Duber, Hindustan Times, Times of India. (Note: The same products is treated by the corporate sector is as Business Promotion) and printing the brand of such corporate. In this case is the goods manufactured by my client called branded or not, even the sale of company is litrally crossing the exemption limit. Please Give the reply for the above mentioned quarry. Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
Your product is not branded hence not applicable
Sir, If You have any citation of case law or which rule it under, please it is requested to quote.
If a person manufactured goods under the brand name of other, then he shall not get the benefit of Notification 8/2003 i.e., SSI exemption benefit.
Explanation 1 to Notification No 8/2003 states that ‘brand name’ or ‘trade name’ means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person;
Thus, if the brand name is of any other person, then the benefit of SSI exemption shall not be available.
However, where the assessee manufactures a component or part manufacturered by SSI which are used by large manufacturer as a part of Original Equipment. E.g., a glass bottle may be manufactured by SSI unit where the name PEPSI or Coco-cola is engrossed --- In such case, Tribunal has consistently held that benefit of SSI exemption is available.
However, your case relates to manufacture of plastic bags, in this regard, Notification No 24/2009-CE(NT) may be referred to the extracts of which are reproduced below:
Exempts Packing materials, namely, printed cartons of paper or paper board, metal containers, high density polyethylene woven sacks, adhesive tapes, stickers, pilfer proof caps, crown corks, metal labels, Plastic bags, Printed laminated rolls affixed with brand name or trade name of another person S.R (E) - Whereas the Central Government is satisfied that a practice was generally prevalent regarding levy of duty of excise (including non-levy thereof) under section 3 of the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the said Act), on goods of description given in column (2) of the table below, manufactured by a unit availing benefit of Notification number given in column (4) of the table below, affixing the brand name or trade name of another person who was not eligible for the grant of exemption under the said notification and that such goods were liable to duty of excise which was not being levied under section 3 of the said Act according to the said practice during the period as specified in column (3) of the said table, namely:- TABLE
2. Now, therefore, in exercise of the powers conferred by section 11C of the said Act, the Central Government hereby directs that the whole of duty of excise leviable under the said Act on such goods manufactured by a unit, where the manufacturer has affixed the specified goods with a brand name or a trade name of another person who is not eligible for grant of exemption under the relevant notification, and has not paid the excise duty leviable thereon on the reasonable belief that he was entitled to the benefit of said notification, but for the said practice, shall not be required to be paid for the period as specified in column (3) of the said table in accordance with the said practice. Explanation: 'Brand name' or 'Trade name' means 'Brand name' or 'Trade name' as defined in the notification numbers given in column (4) of the table above.
Further, recent clarification given on this issue w.r.t ready made garments are has been explained is as under: [Circular No. 947/8/2011- CX dated 21-06-2011] Subject: Clarification on issues pertaining to the levy of excise duty on branded readymade garments and made-up articles of textiles– regarding. Sir / Madam, Board has received representations from trade and industry seeking clarification on certain issues pertaining to the levy of excise duty on readymade garments/made-ups that either bear or are sold under a brand name. These issues are:- (i) applicability of the mandatory levy of excise duty on school uniforms, uniforms for private security guards, companies, hotels, airlines etc and made-ups such as linens, towels etc bearing the name or logo of a hotel, restaurant or airlines etc; and (i) applicability of mandatory levy of excise duty on made-ups such as blankets bearing the name of the manufacturer and supplied to the Ministry of Defence or its organisations 2. The matter has been examined. On the issue of applicability of excise duty on uniforms or made-up articles like quilt, blankets, towels, linen etc bearing the name or logo of a school, security agency, company, hotel or airline etc., it is clarified that such products would not merit treatment as “branded” products merely because the name of the school, institution or company or their logo is either printed, embroidered or etched on them. This is equally true of made ups such as towels, linen etc bearing the name of a hotel, restaurant or airlines. In all these cases, there is no nexus between such a name or logo & the product at the time of its sale which is essential ingredient in the definition of the term “brand name”. Unless such garments/made- ups also bear a brand name in addition to the name or logo of the school, security agency, hotels, airlines and company, such goods would not attract the excise duty. It is also gathered that in some cases, apart from the name or logo of such organisations, the name of the tailor or manufacturer is affixed on such garments. However, mere affixing of name of the tailor or manufacturer would not constitute a brand name. Another related issue is the applicability of the mandatory excise duty to blankets which are supplied to the defence establishment, armed forces, police forces etc against tenders that stipulate that the name of the manufacturer should be clearly indicated or marked on the product. As pointed out above, affixing the name of the manufacturer on such goods would not, by itself, bring them within the ambit of branded goods. [Circular No. 947/8/2011- CX dated 21-06-2011]
Hope, the above discussion will resolve the issue,
Regards,
Rohan Thakkar +91 9228720536 Page: 1 Old Query - New Comments are closed. |
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