We have manufacturing unit(A) in one place which is running at full capacity. there is urgent need of expansion insisted by OE customer, which can not be accommodated in present unit. We have identified another unit(B) 500 meters away. can we start manufacturing their. if yes subject to what conditions and permissions.We can not change name of company and/or start billing from new unit (B) to customer. can unit
ADDITIONAL PLACE OF MANUFACTURING
Rajkumar Chandnani
Manufacturing Company Faces Expansion Challenges: Separate Excise Registration or Job Work Rules for Unit B? A manufacturing company with a fully utilized unit A is exploring expansion options due to customer demand. They have identified a nearby unit B for additional manufacturing but face challenges in billing and supplying directly from unit B. Respondents advise that separate central excise registration is required for unit B. Alternatively, the company could consider job work, where inputs are sent from unit A to unit B for manufacturing and then returned to unit A for final supply. This would involve following specific job work rules and obtaining necessary permissions from the commissioner. (AI Summary)