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

AI Summary

Food Manufacturer Queries Duty Rates Post De-Merger; Experts Confirm Separate Registrations Allow Different Duty Procedures. A manufacturer of food products inquired about the correctness of continuing to pay a 2% duty without availing CENVAT, while a de-merged resultant company pays a 6% duty and avails CENVAT. Both companies, having separate excise registration numbers, were part of a de-merger effective from April 1, 2012. Experts responded affirming that different duty rates are permissible if the manufacturing units are registered separately, allowing each unit to follow its respective duty payment procedure.