Liable to excise or not

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Querist : Anonymous

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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

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.

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Querist : Anonymous

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Querist : Anonymous (Querist)
19 May 2014 In this case then who is the principle manufacturer




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