Suppose there are 2 Manufacturers :-

Manufacturer 1 and Manufacturer 2


Manufacturer 1 Purchases Raw Material(RM) and Makes Semi Finished Goods

Manufacturer 2 Purchases Semi finished goods from Manufacturer 1 and makes Finished Goods

In this case,both will Charge Excise as follows

Sale by one manufacturer to another	 - Concept of First Stage Dealer


What is the excise duty of payable in Manufacturer 1 and Manufacturer 2?


Manufacturer  1     Manufacturer  2  
Particulars Amount   Particulars Amount
Output ED 16000   Output ED 30000
Less     Less  
Input ED (Cenvat on Inputs) 0   Input ED (Cenvat on Inputs) 16000
ED Payable 16000   ED Payable 14000


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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.