child part of parent product(Part of Product)

[RAM SHARMA]

Dear Experts,

We are registered manufacturer in central excise for excisable finished product. Our finished product is liable for excise duty and part of our product is nil rate of duty. Can we sale part of our product without registration in central excise. what precaution should be taken for removal of part at nil rate of duty. Please advice.

Thanks

AI Summary

Manufacturers must reverse Cenvat Credit under Rule 6 if using exempt components in excise-duty products before removal. A manufacturer inquired about selling a component of their product that is exempt from central excise duty without registering with central excise. An expert advised that if the component is exempt, it can be removed without registration. However, if the manufacturer uses these components in finished products subject to excise duty and has availed Cenvat Credit on the raw materials, they must reverse the credit according to Rule 6 of the Cenvat Credit Rules, 2004, before removing the components without excise duty.