ssi exemption on branded goods manufacturerd

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 Dear sir,

We are manufacturing Bakelite Handles for various industries. To some manufacturers we are suppling Bakelite handles with logo For ex PRESTIGE , We are suppling these handles to the original equipment manufacturer and he is using these handles in making his pressure cooker. we are not suppling these handles in the market to any traders. We are also manufacturing handles for other cooker and cookware manufacturers with out any Logo. Our sales are less then 1.5 crores . Now the querry is are we required to get our self covered under excise or is their any Liability of ours to deposit any excise.We are ssi unit isn't we are eligible for SSI exemption

Regards

Vinay Gupta

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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07 August 2010 you can claim exemption of SSI.

The Exemption benefit of Notification No. 1/93-C.E., dated 28-2-1993(simply SSI exemption ) cannot be denied, on ground that assessee used brand name of other for manufacturing of its product, because such use of brand name was exclusively for that customer to whom it was solely sold and not traded with others, hence mischief of Para 4 of said notification cannot be attracted for the purpose of denial of such benefit.-

- Commissioner v. Kohinoor Elastic (Pvt.) Ltd.(SC)

Source: http://www.sreedesaienterprises.com/Central%20Excise/Central%20Excise%20Cases/Supreme%20Court%20Cases/2002/2002%20(143)%20E.L.T.%20A184%A0(S.C).html