Querry in excise applicability

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vatsal dave (Querist)
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16 July 2012 There are two companies for example X and Y and x company is manufacturer of bunk house and having excise number. X sale bunk house to its subsidiary Y as well as others. Now from 01/04/2012 X merged in to Y.Thus now X becomes mafg. division for Y. Bunk House which X sell to Y become assets for Y Company and its in field of service sector, Thus my question is

1.whether excise applicable on any sale transaction with Y ?

2.How valuation rule apply and procedure for CENVAT utilization in case of X ?

ADITYA

ADITYA (Expert)
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17 July 2012 Yes, excise duty is applicable for transfer of goods to your trading division.

Please follow the Excise Valuation Rules for details. Your Mfg Division "X" will get the Cenvat credit for the inputs .