In a relief to the garment industry, the government today said no excise duty will be imposed on uniforms and items like towels if they merely bear logo of the institution or company they are made for.
“.Such products would not merit treatment as branded products merely because the name of the school, institution or company or their logo is either printed, embroidered or etched on them,”the revenue department said.
However, such articles if manufactured under a’brand name’will attract 10 per cent excise duty, as announced in the Budget 2011-12.
“It is clarified that products would not merit treatment as branded products merely because the name of the school, institution or company or their logo is either printed, embroidered or etched on them,”the Central Board of Excise and Customs (CBEC) under revenue department said.
In all these cases, there is no nexus between such a name or logo&the product at the time of its sale which is essential ingredient in the definition of the term’brand name’, it said.
The clarification comes after the board received representations from trade and industry on the issue.
It said that”unless such garments/made- ups also bear a brand name in addition to the name or logo of the school, security agency, hotels, airlines and company, such goods would not attract the excise duty”.
It further said that mere affixing of name of the tailor or manufacturer would not constitute a brand name.
The garment industry had opposed the imposition of the excise duty.
No excise duty on school uniforms, uniforms for private security guards, companies, hotels, airlines etc and made-ups such as linens, towels etc bearing the name or logo of a hotel, restaurant or airlines but not any brand name