Separate procedure of paying duty

[S.C. WADHWA]

Dear Experts,

We are manufacturers of food products and paying duty @2% with out availing cenvat. But our resultant company
paying duty @6% and getting cenvat. Also dealing in food products. Our company was de-merged with that
company in the year 2014-15 but w.e.from 1.4.12. Both companies are having their separate excise registration nos.
Now my query is that we have continued the same procedure for payment of duty i.e 2% by us and 6% by
resultant company is correct or not. Please give your expert opinion.
Regards,
WADHWA

[Rajagopalan Ranganathan]

Sir,

If two manufacturing units of the same company can discharge duty at different rates if the manufacturing units are registered separately.

[ashish chaudhary]

Yes, duty can be charged at separate rates when both the companies have separate excise registration.

AI Summary

Separate excise registration permits different duty rates and distinct Cenvat eligibility for demerged entities post-demerger. Where separate excise registration numbers exist for distinct manufacturing units or companies post demerger, each registered unit may discharge duty at the rate applicable to it and separately determine Cenvat eligibility and compliance, permitting different duty rates and Cenvat treatment between the entities.