We the manufacturer and having two factories ABC & XYZ. Finished Product ‘A’ can be manufactured in both the factories. Ideally it is produced in factory “ABC” but due to limitation in production capacity in factory ABC we intend to manufacture product “A” in factory “XYZ”. This finished product will then be sold to ultimate customer from factory ABC. Please let me know is this in line with excise law?
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Manufacturer Seeks Excise Law Guidance on Product Transfer Between Factories; Duty Payment Required per Central Excise Law A manufacturer with two factories, ABC and XYZ, seeks advice on excise law compliance when producing a product, "A," at factory XYZ due to capacity limits at factory ABC. The plan is to sell the product from factory ABC, but a respondent questions why the product isn't sold directly from XYZ. The respondent advises that transferring the product from XYZ to ABC requires paying the applicable excise duty, as per Central Excise Law. (AI Summary)