Use of One Building by two Companies for Excisable goods

[Pradeep Kaushik]

Respected Sir,

We are an Exciseable goods manufecturing company and we are operating from Ground Floor of a commercial Building, which we have taken on Lease Rent.

Now some another Manufecturing Company wants to take the First Floor of the same building on Lease Rent. Is it possible, that we both companies can operate from the same premises. The entrance of the Ground Floor and First Floor are seperate.

Is there any obligation as per Excise Taxation. If Yes, please clarify in detail.

Best Regards.

 

[Sucheta Agrawal]

Dear Sir,

There is no problem from the point of view of excise registration if Premises are same but areas are different. in your case you are operating your manufacturing activity from the ground floor and another company wants to take first floor of the premises, thus areas are different. thus there is no issue on this you may carry on.  

 

[YAGAY andSUN]

There are no clear cut guidelines on the issue, but it appears that there can be two or more manufacturer in the same factory and separate registration can be granted.

In Modi RJR Ltd. v CCE 1999 (111) ELT 348 (AP HC DB) it has been held that there is no statutory provision in Act or Rules that if  a particular person is having registration in the premises, second registration cannot be issued.  Authority must issue registration certificate.

Further, In sarabhai chemicals v CCE 2001 (134) ELT 442 (CEGAT), it was observed, The concept of more than one firm useing the same facility for manufacture.  Thus there being more than one manufacturer in the sam facotyr ins not uncommon to excise law. 

In krone Trading Co. v CCE 2003 (154) ELT 518 (CEGAT), it was held that there can be more than one manufacturer in a factory.  There is nothing illegal or unusual in that.

[shamanthaka mani]

Hello,

 

There is no bar in having two registration in a single factory.  Though there is no specific provision under Central Excise Law on this issue, the SSI Notification envisages two or more manufacturers in one factory.   From this it is clear more than one registration is allowed in one factory. 

However the exemption under SSI Notification is not applicable to both the Manufacturers. 

 

With best wishes.

 

AI Summary

Separate registration for co located manufacturers allows distinct excise registrations though exemptions require individual eligibility. Separate occupancies with independent entrances and demarcated areas permit distinct manufacturing operations and separate excise registration. Authorities and decisions recognise the concept of multiple manufacturers in one factory, so registration certificates may be issued to different manufacturers in the same building. Eligibility for SSI or other notification-based exemptions must be assessed for each registered manufacturer and does not automatically apply to all co-located units.