Purchase from SSI Unit

[kiran pai]

Dear Sirs,

A  leading brand name retail chain in India is purchasing excisable goods from the SSI.  Being a SSI unit the branded goods are send  to the retail chain godown with out duty paid.  Now can any one clarify that, if the retail chain store sold the said non dutiable goods purchased from the SSI unit to the customer as it is.  Is it necessary to pay the duty on the said goods which sold to the customer directly.

Thanks,

Kiran Pai  

AI Summary

Retail Chain Exempt from Excise Duty on Goods from SSI Unit if Brand is Owned by the Manufacturer. A retail chain in India is purchasing excisable goods from a Small Scale Industry (SSI) unit without paying duty. The query seeks clarification on whether duty must be paid when these goods are sold directly to customers. Responses indicate that if the SSI unit owns the brand name, it can benefit from duty exemption. However, if the brand is owned by someone else or the retail chain, the exemption does not apply. Since no further processing is done before selling, no excise duty is required if the SSI unit manufactures goods using its own brand.