Whether brand owner is a manufacturer?

Sometimes brand owner does not manufacture the goods but it get made from other manufacturers.

In this case, who will be the manufacturer, the brand owner or actual manufacturer?


If brand owner exercises control and supervision over the whole manufacturing process, then he will be called as manufacturer.

If the brand owner barely gets the goods made as per his specification, then the person manufacturing it will only be called as manufacturer

Exam Questions

Question 6
A purchases cloth and gives it to B, who is a tailor, to stitch a shirt as per measurements and
requirements of A. B stitched the shirt and gave it to A. In the given case, who will be treated
as manufacturer of the shirt for the purpose of levy of central excise duty?

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Question 7
Famous Hero Motors Ltd. purchases raw material and supplies it to JBK Engineering
Company. JBK Engineering Company manufactures automobile components as per the
design supplied by Famous Hero Motors. Such components bear brand name of Famous
Hero Motors Ltd. namely, 'Famous Hero'. JBK Engineering Company supplies these
components to Famous Hero Motors Ltd., who in turn sells them in market as spare parts of
automobiles. Who is liable to pay central excise duty on such components?

View Answer

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.