excise on garments

[satbir singhwahi]

Sir

Garment export unit has received domestic order for supply of garments under brand name ' allensolley'. Now whether it can make domestic supplies with brand name upto ₹ 150 lacs without excise registration.

AI Summary

Garment Manufacturer Must Pay Excise Duty for Branded Goods; SSI Exemption Not Applicable Per Notification No. 8/2003-CE. A garment export unit received a domestic order for garments under the brand name 'Allen Solly' and inquired about the possibility of supplying up to 150 lakhs without excise registration. It was clarified that the SSI exemption does not apply to goods bearing another's brand name, as per Notification No. 8/2003-CE. Therefore, the manufacturer must pay duty on such branded goods. The brand owner can avail of the exemption if specific conditions are met, such as not instructing the manufacturer to affix a retail sale price. The discussion highlighted the complexities of excise duty regulations for branded goods.