TaxTMI 
TaxTMI 
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.
excise on garments
15 Jul 2016 
6 Replies 
1882 Views Asked by
SSI exemption barred for manufacturers clearing garments under another's brand; brand owner may retain exemption if RSP not affixed.
A contract manufacturer clearing garments bearing another person's brand name is excluded from the SSI exemption; such branded clearances are not counted towards the exemption threshold under the cited notification, making the manufacturer liable for excise duty. The brand owner may claim the exemption for its own clearances provided the brand owner controls labelling and does not instruct or disclose the manufacturer to affix the Retail Sale Price, consistent with the notification's conditions. (AI Summary)
A contract manufacturer clearing garments bearing another person's brand name is excluded from the SSI exemption; such branded clearances are not counted towards the exemption threshold under the cited notification, making the manufacturer liable for excise duty. The brand owner may claim the exemption for its own clearances provided the brand owner controls labelling and does not instruct or disclose the manufacturer to affix the Retail Sale Price, consistent with the notification's conditions. (AI Summary)