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.

[Santosh Mali]

1.  Amend the Existing Excise Registration amended for Revised Ground Plan. (i.e. Area proposed to be used for Rerolling to be kept in existing Registration)

Technically - All machines should be at proposed Rerolling area.

2. Get new Excise Registration for Remaining area (separated with compound wall) in the name of New Partner. (Ground plan of remaining area to be submitted while obtaining new registration)

3.  Prepare Excise Invoice in the name of New Partner and pay duty (After availing reduction in Cenvat as per Cenvat Credit Rules ).

4.  New partner will avail Cenvat Credit in his books.

Separate accounts will be maintained by two units.

All other procedure related to other acts may be followed accordingly.

AI Summary

Excise registration: amend existing and obtain new registration, issue invoice and apply Cenvat credit on bifurcation.
Amend the existing excise registration with a revised ground plan to retain the rerolling area and ensure all rerolling machines are located there. Obtain a separate excise registration for the segregated area in the new partner's name with its ground plan. Issue an excise invoice in the new partner's name, pay duty after claiming reductions under the Cenvat Credit Rules, and allow the new partner to avail Cenvat credit. Maintain separate accounts and comply with other statutory procedures.