merging of two business entity

[Ramesh Patel]

What is criteria for merging two business entity in excise. Under which rule this can be referred.

AI Summary

Merging Business Entities: No Excise Duty on In-Factory Goods; Follow Rule 10 for CENVAT Credit Compliance. A query was raised regarding the criteria for merging two business entities in the context of central excise. The response highlighted two key issues to address: the duty on finished goods in stock at the time of merger and the treatment of unutilized CENVAT credit. It was clarified that if goods remain within the factory, excise duty is not payable as ownership remains unchanged post-merger. However, the handling of CENVAT credit should comply with Rule 10 of the CENVAT Credit Rules, 2004.