Procedure for bifurcation of single unit into two units

[Hariharan Sundaram]

Dear experts. pl clarify how to bifurcate single unit having manufacturing facility of melting and rerolling facility into two units so that one unit will have melting unit and the existing unit will have rerolling facility. The melting section is proposed to be leased out to new partners and there will be a compound wall separating two units. . procedure for the bifurcation in respect of central excise registration along with the documents / declarations to be submitted for bifurcation may please be given.

AI Summary

Guidance on Excise Registration for Splitting Manufacturing Units with Melting and Rerolling Facilities: Key Steps and Compliance. A query was raised regarding the procedure for bifurcating a single manufacturing unit with melting and rerolling facilities into two separate units. The plan involves leasing the melting section to new partners and separating the units with a compound wall. The response advised amending the existing excise registration to reflect the revised ground plan for the rerolling area and obtaining a new excise registration for the melting area. The new partner should prepare an excise invoice, pay duty, and avail of Cenvat Credit, maintaining separate accounts for each unit. Additional procedures under other relevant acts should also be followed.