Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Excise Duty

Thirupathi Reddy (Final Student) (44 Points)

13 October 2007

Hi friends

We have a client (S.S.I Unit) doing a business of manufature of mineral water . but he is using the brand name of some other company and is paying the Royalti to them based on sales .he was not achived the turnover of 1.5 Crors as a S.S.I unit can he eligibility to clime the exempion or not

Pls give the clarification

Reply
Follow
Share

4 Replies

girish (article) (567 Points)
Replied 15 October 2007

HELLO EXPERTS Answer my friend querry

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

WHAT IS A CENTRAL EXCISE DUTY

OFFICESELVA (Service) (515 Points)
Replied 28 October 2007

Small Scale Exemption is not available if a manufacturer is uses brand name of others. Therefore your friend should pay excise duty from the first clearance.

Vijay K. Agrawal (Service) (608 Points)
Replied 29 October 2007

I am sendinmg relevant para of SSi unit. which prohibit inclusion of turnover of brand name - another person. . The following clearances are excluded from computation of value of clearances 1.Clearances of the specified goods which are used as inputs for further manufacture of specified goods within the factory irrespective of the value of clearances. 2.Clearances of excisable goods affixed with the brand name or trade name of another person who is not eligible for availing the exemption under the aforesaid notification. However, the clearances of goods affixed with the brand name or trade name of another person - other than those which are in the nature of components or parts of machinery or equipment for use as original equipment in the manufacture of the said machinery, goods bearing the brand name of KVIC, NSIC or a State Small Industries Corporation or State KVIB or those goods manufactured in a factory located in a rural area are not eligible for the exemption/concession from excise duty irrespective of the value of clearances. It is clear from the above that only brand name related to KVIC, NSIC etc,. are eligible for SSI exemption.