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

[Arun Kumar Singh]

The ABC co. products are falling under notification no. 30/2004 then he can also avail the exemption notification.

AI Summary

Exemption entitlement for sister concerns manufacturing exempt goods may be claimed where no cenvat credit is availed. A registered manufacturer clearing finished goods without availing cenvat may rely on the exemption in Notification No.30/2004; if a sister concern processes goods within the same premises and those goods also fall under the same exemption and involve no cenvat, those products can be cleared under the exemption, contingent on compliance with the notification's conditions, operational segregation, and appropriate documentation.