Pradeep Kumar Banduni (Commercial) (190 Points)
13 July 2011Hi,
If a trader will purchase the goods from excise un-registered mfg. firms with own brand logo then who is the liable to pay the duty as manufacturer is unregistered and not paying any duty on the product.
Regards
Pradeep Kumar Banduni
Durga prasad Ambati
(Taxation, Pursuing CA)
(737 Points)
Replied 13 July 2011
If the unregistered mfg. co. turnover does not exceed 1.5 crores , is not liable to pay the central excise.
Pradeep Kumar Banduni
(Commercial)
(190 Points)
Replied 13 July 2011
but purchaser taking the goods in own branding on the product. Is any liabilty will stand on them? and if that trader is excise registered company also then what is the liabilty will come one the company?
Durga prasad Ambati
(Taxation, Pursuing CA)
(737 Points)
Replied 13 July 2011
If the purchaser take the goods in own branding on the product, the liability of central excise is only goes to who are the manufacturer.
If trader is excise Dealer , there is no liability to pay duty. he is liable to only pass on the duty to his customers.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 13 July 2011
| Originally posted by : Pradeep Kumar Banduni | ||
 |
Hi, If a trader will purchase the goods from excise un-registered mfg. firms with own brand logo then who is the liable to pay the duty as manufacturer is unregistered and not paying any duty on the product. Regards Pradeep Kumar Banduni |
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1) goods are manufactured by SSI unit availing 1.5 cr exemption
2a) brand name is of somebody who is eligible to pay duty ( non ssi)
2b) brand name is of somebody who is not eligible to pay duty
3a) manufacturer fixed the brand and cleared as branded goods
3b) manufacturer fixed the brand but cleared the goods as unbranded
A) situation 1+2a+3a = manufacturer can not use his SSI capacity and has to pay duty on such clearance from Rs 1/-
B) situation 1+2a+3b= manufacturer will deny that the brand was not communicated to him and he knows nothing about it , and brand owner would get liable to pay duty for affixing his brand as deemed manufacturer for fixing the brand.
C) situation 1+2b+3a = no impact as manufacturer as well as brand owner both are exempted, here the manufacturer has to get a excise tax status of brand owner, with undertaking that if duty is levied, the brand owner will pay the duty component.
D) situation 1+2b+3b = No impact as both are exempted.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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