SSI Units and Brand Name

SSI Exemption Denied for Branded Goods Owned by Others; Burden of Proof on Department; Some Exceptions Apply

The Small Scale Industries (SSI) exemption in central excise is not applicable if goods are cleared with a brand or trade name belonging to another entity, unless the brand is not owned by anyone else. The burden of proof that a brand name belongs to another is on the department. SSI exemption is unavailable if the brand belongs to a sister concern, non-manufacturing trader, foreign company, or if a subsidiary uses the holding company's brand. However, exemptions apply if the brand is used for original equipment manufacture, if the brand is not affixed on goods, or if the brand name is jointly held but used in different territories. Special provisions allow exemptions for goods like packaging materials under certain conditions.