Excise on Sold Brand name

Some large units get their goods manufactured from others under their brand name, instead of manufacturing it themselves. then usually control quality and may even supply the design. e.g. Bajaj electricals get many electrical goods manufactued from others; Bata procures some foot-wear from others and supplies under its brand name. In such cases; Bajaj and Bata companies will not be treated as 'Manufacturer' even if they exercise quality control, or allow use of their brand name. brand name owner will not be manufacturer.

Dear Suresh Patel

Arunji is absolutely correct. I am agree with him.

Regards

HS Negi

Thanks Mr. Arun Kumar singh and Mr. HS Negi for your reply. Comapany XYZ is liable for excise or not, It is SSI unit. SSI benefit of 1.5 crore is available for them or not.? 

Company xyz will be liable to pay Excise duty and they can avail SSI benefit.

Under given facts your company has not transferred the trade mark to xyz , but only gave right to use . Now they are manufacturing goods using the trade mark belonging to your company hence, xyz is not eligible for SSI exemption . But if the factory of xyz is situated in a rural area, they can still use the trade mark and avail exemption.