Sale of Plant & Machinery for closed factory

[RAM SHARMA]

Dear Experts,

We are registered manufacturer in central excise. We have purchased a closed factory with some plant and machinery. Can we sale these plant and machinery on behalf of existing running  factory. Please tell procedure and their implication.

Thanks

[Surender Gupta]

Your query needs detailed consideration of the facts and circumstances. Is there any due or demand pending against the factory / previous owner. Whether cenvat credit has been availed on plant and machinery.

You may read section 11 of Central Excise Act to know the responsibilities as a successor.

AI Summary

Successor liability requires checking outstanding excise dues and cenvat credit before selling acquired plant and machinery. Sale of plant and machinery acquired from a closed factory by a registered manufacturer engages successor liability and requires due diligence to determine outstanding excise dues and whether cenvat credit was availed on those assets; these facts determine procedural requirements and potential restrictions under the Central Excise Act.