TaxTMI 
TaxTMI 
Copany A LTD is manufacturing Fully Drawn Yarn(FDY) from Chips and and is excisesable goods. Company B LTD is procuring Yarn from out side and do some process on it and then sale it. the product of company B LTD is non excisable. Now A Ltd. wants to take over B Ltd. The question is that is after take over product of B LTD which is nonexcisable becomes excisable or remains as it is. Is it batter to maintain saperat books of account for both excisesable product and non excisable product as A LTD (UNIT-1) for excisable goods and A LTD (UNIT-2) for non excisable goods?
Applicability of Excise
29 Apr 2011 
2 Replies 
1851 Views Asked by
Non-excisable goods remain non-excisable after takeover; maintain separate excise registrations and books; cenvat issues may arise.
Non-excisable goods do not become excisable by virtue of a corporate takeover; excisability depends on government notification. Excise registration is premises-specific and may be renamed after takeover; maintaining separate registrations and separate books of account for excisable and non-excisable units is appropriate. Cenvat credit issues can arise if inputs or input services are commonly used post-takeover and must be addressed for eligibility and apportionment. (AI Summary)
Non-excisable goods do not become excisable by virtue of a corporate takeover; excisability depends on government notification. Excise registration is premises-specific and may be renamed after takeover; maintaining separate registrations and separate books of account for excisable and non-excisable units is appropriate. Cenvat credit issues can arise if inputs or input services are commonly used post-takeover and must be addressed for eligibility and apportionment. (AI Summary)