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  

[Alok Kumar]

dear Mr. Kiran Pai,

In the first place the benefit of SSI Exemption will be vailable to the said SSI unit only when the brand name is owned by the SSI UNIT .

In case the brand name is owned by some one else or by the  retail chain himself then the exemption from duty of excise will not be available to the SSI UNIT.

As mentioned in you query that nothing is done further on the said goods before selling the same to your cutomers , then in this situation no duty is required to be paid by you.

Thanks,

 

ALOK kumar

[YAGAY andSUN]

Dear Kiran,

 

Well if SSI unit is manufacturing on your behalf and using your brand on the manufactured goods then Excise duty will be applicable otherwise not.  Since while selling of goods there is no such activity involved, hence no requirement of paying the C.E. Duty.  Please also check the facts that whether Leading Brand retail chain is getting goods manufactured from SSI units with its own brand name or not?

Regards

 

Pradeep Khatri

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.