ADDITIONAL PLACE OF MANUFACTURING

[Rajkumar Chandnani]

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

[MUKUND THAKKAR]

Dear Rajkumar,

separate registration is require, if you carried out any manufacturing activity and cleared goods from their to your customer, you can treated as separate unit and follow the rules as per central excise law. Regards.

[Rajkumar Chandnani]

DEAR MUKUND THANKS FOR FEEDBACK BUT WE CAN NOT BILL AND SUPPLY TO CUSTOMER FROM NEW EXCISE ENTITY/PLACE.I AM EXPLORING THE POSSIBILITY FOR JOB WORK/LOAN LICENSE MFG BY SENDING INPUTS FROM OLD TO NEW PREMISES AND RECEIVE BACK FOR SUPPLY TO CUSTOMER OR SAME REGISTRATION FOR BOTH PREMISES THRU COMMISSIONER PERMISSION.

[MUKUND THAKKAR]

Dear Rajkumar,

please refer the job work rules if you want to carried out activity under job work rules, in such case permission is granted by commissioner to remove the goods from job worker premise in such case valuation rules 10A may applicable in your case up to place of removal. but any documents are possibilities for generating the invoice is not possible without registration from the place of job worker. as described by you can only sending the raw material under job work and get it back and remove only from your place.

[PAWAN KUMAR]

Dear Sir,

As per my view, you need to file separate central excise registration of unit B. Start manufacturing and supply goods on payment of duty to unit A. Unit A avail Cenvat and further clear on payment of applicable duty.

Another Option is, You may send your inputs to unit B under cover of job work challan. Manufacture the goods on job work basis and return to unit A without payment of duty. Unit A then clear on payment of duty to customer.

AI Summary

Separate central excise registration required for new manufacturing premises or use job work routes to return goods duty free to principal unit. Separate central excise registration is required where manufacturing is carried out at a new premises and goods are cleared from that location; alternatively, inputs can be sent to the new premises under job work or loan license arrangements so finished goods return to the principal unit without duty at the job worker location, allowing unit A to avail Cenvat and clear on payment of duty, subject to job work documentation, valuation rules (including Rule 10A) and any commissioner approval.