merging of two business entity, Central Excise

[Ramesh Patel]

What is criteria for merging two business entity in excise. Under which rule this can be referred.

Posts / Replies

[Rama Krishana]

In excise two issues are to be addressed before merging of two units (1) Duty of finished goods lying in stock at the time of merger (2) Treatment of unutilized cenvat credit. To the extent first question is there, if the goods remains withing the factory of production, excise duty is not payable since even after merger, the owner would remain same. But, regarding cenvat credit, you need to follow rule 10 of the CCR, 2004.