FIXING OF LOGO BY TRADER IN EXCISE

[deepak gulati]

If a Retail trade chain fixes its logo and MRP on ready made garments procured from different manufacturers, will it be covered under Excise and registeration is required.

It is clarifies that Trader is not doing any kind of value addition except fixing its Logo and MRP sticker.

[YAGAY andSUN]

Kindly check 3rd Schedule of the Tariff in this regard.

[deepak gulati]

Thx Mr. Khatri,

The Third schedule do not contain the items of chapter 61,62 and 63.

However these chapter contain note (11 and 12 ) that IN RELATION TO A PRODUCT OF THIS CHAPTER,AFFIXING A BRAND NAME..........

Pl clarify in this context, do fixing MRP or RSP on garments will amount to manfucture.

Regards 

[KASTURI SETHI]

UPDATION (Relevant Circular is appended below)

Ready-made garments and made-up articles - Budget 2011-12 changes

D.O. F.No. 334/3/2011-TRU, dated 28-2-2011

Affixing logo on school uniform is exempt vide Board's circular No.947/8/2011-CX dated 21.6.2011

 

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AI Summary

Affixing brand logo or MRP on garments may constitute manufacture for excise, impacting registration and exemption analysis. Whether a trader who procures ready-made garments and only affixes a logo and MRP/RSP constitutes manufacture for central excise-thereby triggering registration and levy-is contested; chapter notes in the tariff and the Third Schedule classification are material to that determination, and administrative guidance (including a Board circular exempting affixing a logo on school uniforms) may provide specific exemptions to such characterization.