Excise duty on trading

[S.C. WADHWA]

Dear Experts,

Unit A manufactured BREAD CRUMBS IN HARYANA and transferred the stock in bulk packing to unit B in Haryana (who is also manufacturers of food products )after
paying excise duty under tarrif head 19041090 @6%. And Unit B is paying excise duty @2% without getting cenvat. Unit B
will sell this item both in bulk and in retail packing.
Now my query is that whether Unit B has to pay again excise duty or not. And Unit B has to inform excise authorities in
this regard. Please give your expert opinion. Regards, WADHWA

AI Summary

Unit B Excise Duty Clarification: Sale Price Basis Possible with Prior Approval; Otherwise, 2% Duty Without CENVAT Credit. Unit A in Haryana manufactures bread crumbs and transfers them to Unit B, also in Haryana, after paying excise duty at 6%. Unit B, which sells the product in bulk and retail, pays excise duty at 2% without claiming CENVAT credit. The query seeks clarification on whether Unit B must pay excise duty again and inform the authorities. The response clarifies that if goods are cleared from Unit B, excise duty can be based on Unit B's sale price with prior permission from Central Excise. Otherwise, additional duty of 2% applies without CENVAT credit.