Manufacturing of Exempted Item / Goods

[SNEHAL SHAH]

Respected sir,

We are the manufacturing of Exempted goods under Central Excise rules , under Notification NO.30/2004 under various tariff heading from 50 to 63. [ We are not taking cenvat credit and not Paid the duty at the time of clearance as per Notification condition ] .

We are registered under Central Excise department XYZ CO. Name and Manufacturing of 62 and 61 Product and clearance the FG under Not.30/2004.

Now we have utilize some area/space of XYZ premises for processing of 54.02 and 54.03 product ( Owner of this product is ABC co. ( Sister concern ) ) . There is no any Cenvat involvement in this material .

Please brief about any Excise related litigation arise or not ?? What precaution will be taken , plz suggest .

Thanks and Regards,

SNEHAL SHAH

AI Summary

Company Manufacturing Exempt Goods May Share Exemption with Sister Concern Under Notification No. 30/2004 A company registered under Central Excise rules is manufacturing exempted goods under Notification No. 30/2004, covering tariff headings 50 to 63, without utilizing Cenvat credit or paying duty at clearance. They are using part of their premises to process products for a sister concern, ABC Co., under tariff headings 54.02 and 54.03, without Cenvat involvement. They seek advice on potential excise litigation and precautions. The response indicates that if ABC Co.'s products also fall under Notification No. 30/2004, they can avail the same exemption.