Excise duty levy or not

CA Arun Kumar (AM) (41 Points)

25 February 2017  
Dear Experts, Appreciate if you could advise on below Query: We have received an order for supply of Machinery parts from one of the Canadian Company and we will be receiving entire amount in foreign currency. However the goods which we have to supply are part of one machine which will be assembled by another company within India. Now the problem is that we are not exporting goods directly to the Canadian Company instead we will remove goods from our factory to other company in which they will assemble and sell the final Goods. Both the companies has received separate order however final product would be despatch by second company after the goods are assembled My question is how can we avoid paying excise since the final product will be exported.