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

Cenvat credit entitlement may allow duty discharge on reseller's sale price with prior excise permission.
An invoice from a depot or consignment premises can qualify for Cenvat credit and a depot/consignment agent is not a first stage dealer but must be registered. Where transaction value conditions are satisfied-delivery at place of removal, unrelated parties, and price as sole consideration-duty may be discharged based on the reseller's sale price; clearing goods from the reseller's premises requires prior Central Excise permission, otherwise the reseller must pay duty without availing Cenvat, leading to additional duty under valuation rules.