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

SSI exemption: duty depends on brand ownership and whether the unit manufactures on its own account or on behalf.
Excise duty on goods sold by a retail chain after purchase from an SSI unit turns on brand ownership and the manufacturing relationship: where the SSI unit owns the brand and manufactures as its own product the SSI exemption can apply and the retail chain's resale without further activity does not attract duty; where the brand is owned by another or the SSI manufactures on behalf of the brand owner the exemption will not be available and excise duty consequences arise.