TaxTMI 
TaxTMI 
excise on garments
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....xcise on garments<br> Query (Issue) Started By: - satbir singh wahi Dated:- 15-7-2016 Last Reply Date:- 15-7-2016 Central Excise<br>Got 6 Replies<br>Central Excise<br>Sir Garment export unit has received domestic order for supply of garments under brand name ' allensolley'. Now whether it can make domestic supplies with brand name upto ₹ 150 lacs without excise registration. Reply ....
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....By PAWAN KUMAR: The Reply: Dear Sir, As per my view, No, SSI exmption for clearance bearing brand name of others will not be eligible for exemption up to 150 lacs during present year. Reply By CS SANJAY MALHOTRA: The Reply: Manufacturer who is manufacturing goods on behalf of a brand owner like Allen solley in this case, will not be eligible for grant of SSI exemption due to the Notification N....
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....o. 8/2003-CE dated 01.03.2003 in which it is clearly mentioned [Point 3(b]) that for the purpose of determining the first clearances upto an aggregate value not exceeding ₹ 150 lakhs, "the clearances bearing the brand name or trade name of another person" shall not be taken into account (subject to exceptions provided in point 4 of the same notification) Thereby in such case, the manufactur....
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....er, manufacturing products bearing a brand name of another person cannot avail the benefit of SSI exemption hence shall be liable to pay duty on the clearance of such branded goods. Further, where the brand owner gets his goods manufactured by other manufacturer, the brand owner of such branded garments can avail SSI exemption of ₹ 150 Lakhs, only if following conditions are satisfied:- B....
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....rand owner who is getting its garments manufactured from another manufacturer does not instruct/disclose such manufacturer to affix Retail sale price (RSP) on the manufactured goods (then Manufacturer does not have to pay Excise Duty unless authorised by brand owner) and the readymade garments are having RSP of ₹ 1000 and above when they bear or are sold under a brand name affixed / labelled....
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.... by the Brand Owner (Brand Owner to avail duty exemption or pay Duty as the case may be) Reply By satbir singh wahi: The Reply: Thks Sanjay Ji Very informative. But this branded Allen solley domestic order is of only ₹ 15 lakhs,What best one should do.Going for registration will mean whole export excise procedure . Reply By CS SANJAY MALHOTRA: The Reply: The only option for availing du....
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....ty exemption in this case is to take up with the brand owner (who may or may not agree) for not disclosing and getting the RSP affixed on the garments manufactured at your end. Reply By satbir singh wahi: The Reply: Thks Sanjay Ji Reply By Ganeshan Kalyani: The Reply: Sir, the conversation enriched my knowledge. Thanks Sri Sanjay Sir. Thanks.<br> Discussion Forum - Knowledge Sharing ....