excise credit

depending on merit of goods manufactured, you can clear the goods in CKD condition or in parts, and other unit can take credit and assemble them, and clear the same on payment of duty ( value addition is to be applied ), there is no bar to addopt the process, but atleast one process should be handled by the receiving unit to confirm the manufacture, 

both units would get clubbed for vaulation purpose of SSI reg 150/400 lacs

"depending on merit of goods manufactured, you can clear the goods in CKD condition or in parts, and other unit can take credit and assemble them, and clear the same on payment of duty ( value addition is to be applied ), there is no bar to addopt the process, but atleast one process should be handled by the receiving unit to confirm the manufacture, 

 both units would get clubbed for vaulation purpose of SSI reg 150/400 lacs"

AGREED...  AND IT IS THE BEST WAY TO GO FOR REBATE.

If there is huge gap between receipt of goods in unit 2 and its further export, then it is advisable to go for Rebate.  Anyhow unit 2 repacks the goods to export worthiness, it is eligible for taking cenvat credit.