Excise implication on rented property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2013 Dear Sir,

we have manufacturing unit (Proprietor Firm)now we have taken new place just beside the existing unit and constructed factory under the banner of a new Pvt ltd. company. We are planning to start commercial production from 1st April'14 in the new premises as well as want to close the manufacturing activity of the old unit but still want to use old unit premises & machinery for production of some specialized items against which Pvt ltd. will pay the rent to old unit (Firm).

Pls. confirm whether it is acceptable for excise point of view! If so then pls advice what kind of record to be maintain for the above situation.
Apart from that you are also requested to advice us how we will deal with closing (31.01.14) finished goods & Raw Material as we will close sales of existing unit as on 31.3.14.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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05 November 2013 Now existing unit is registered with excise or not. If registered then you can transfer the all inputs and capital goods to new unit, they can take the cenvat credit after paying the duty. New unit should not pay the rent of existing unit because both units are different.