Central Excise Act

Excise duty is levied on the manufacture or production of goods. However, manufacturer can claim set off of the duty paid on inputs for payment of excise duty on final products.

In amalgamation or demerger the important considerations with respect to excise laws is the effect on registration of transferor and transferee, availability of Cenvat credit, transfer of liability. We have discussed such critical aspects in the following lines.

Particularly, following issues arise in case of merger-

  1. Whether Transferor Company is required to surrender Registration?
  2. Whether it is Compulsory for Transferee Company to take new registration?
  3. Whether Transfer of CENVAT credit can be allowed?
  4. Whether Liability of Excise can be transferred to transferee Company?
  5. Recovery of unpaid duties of predecessor from successor
  6. What are the registration requirements when product of amalgamating company different than amalgamated company?