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

Does Affixing Logos and MRP on Garments Require Excise Registration? Insights on Tariff 3rd Schedule and 2011 Circular. A retail trade chain inquires whether affixing its logo and Maximum Retail Price (MRP) on ready-made garments procured from various manufacturers requires excise registration, given no value addition occurs. One respondent suggests consulting the 3rd Schedule of the Tariff. Another clarifies that chapters 61, 62, and 63 do not list these items but include notes on brand name affixation. A final reply references a circular indicating that affixing logos on school uniforms is exempt from excise duties, as per a 2011 circular. The discussion revolves around whether such actions constitute manufacturing under excise law.