Separate procedure of paying duty, Central Excise

[S.C. WADHWA]

Dear Experts,

We are manufacturers of food products and paying duty @2% with out availing cenvat. But our resultant company
paying duty @6% and getting cenvat. Also dealing in food products. Our company was de-merged with that
company in the year 2014-15 but w.e.from 1.4.12. Both companies are having their separate excise registration nos.
Now my query is that we have continued the same procedure for payment of duty i.e 2% by us and 6% by
resultant company is correct or not. Please give your expert opinion.
Regards,
WADHWA

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

If two manufacturing units of the same company can discharge duty at different rates if the manufacturing units are registered separately.

[ashish chaudhary]

Yes, duty can be charged at separate rates when both the companies have separate excise registration.