Shifting of excise premises

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2012 My co manufactures Mens & Womens apparel in woven fabrics. The product range includes Mens & Womens shirts, trousers, blazers, shorts etc.
It also manufactures under their own unisex lifestyle flagship brand and also for other brands on job work basis.Excise duty is charged and paid on the same by our co.
The Co. also deals in trading of readymade garments and Fabric on which excise duty is directly paid by the manufacturer.
The Co. has completely outsourced its manufacturing activity to other job workers on a job work basis.
The Co. also does job work for export brand.
•brand is marketed through its chain of own exclusive brand outlets (EBO's) and organized retail chains across India
•The Co.is currently registered under Excise department for its Fabric and Garments godown.
•Since the current warehouse space is small and operation is going big, the Co. has taken one more warehouse.
•The new warehouse fall under different jurisdiction of Excise, the new excise no. is already been taken.
•The Co. wants to transfers all it’s finished goods and fabric from old Warehouse to new warehouse.
•Every month’s excise liability is been paid after adjusting CCA available.
•There is unutilized Credit in Cenvat Credit Account (CCA) of Company for present warehouse.
•The bills on which cenvat credit is taken are with the address of old warehouse.
•The Co. is going to continue with those old premises also, by converting it into office premises; hence the cenvat credit bill will come at same office address.
•The co. wants to surrender the old excise registration no. as there will be no. operations of finished goods or fabric been held in future at that premises. There will only be corporate office at that premises.
•The co has already issued much fabric from old warehouse for job working, whose processing time is near about 3-4 months.
•We want your opinion on the following matters
1.Whether the Co. can transfer its Finished Garments and fabric from old warehouse to new.
2.Whether on transfer, will the co. have to pay excise duty on finished goods or not.
3.If it has pay the excise on transfer then whether it can utilize its CCA credit
4.Whether the credit, which is in the name of old warehouse, will be available for new warehouse also, in future.
5.If not whether on registering under service tax distributor, can we distribute the cenvat credit of old warehouse (then office) to new warehouse?
6.Whether the co. should receive finished garments at the same old warehouse from where it has dispatched its fabric or it come at new warehouse.
7.Whether the co. can surrender its old excise registration no.
8.What other compliances will have to be done.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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11 February 2012 When you change factory premises, fresh registration is required under Central Exicse. Existing registration need to be surrendered. Tranfer of unutilsed cenvat credit is possible under Rule 10 of CCR subject to satifaction of Asst.commissioner.

Please Note:
If you are DTA unit following procedure is to be followed,

1. You have to take permission from Department for Such Shifting. First register new premises under excise. Take new reg. no. though you are registered under excise. Same is b"coz Excise registration is for premises & not for person

2. Clear all RM & FG stock from existing factory. All clearance of INPUTS will be removal as such i.e. reverse the cenvat availed on the same. In case in FG you have to pay duties as you are paying at the time of clearance.

3. You can avail credit of all above duties at new premises.

4. Surrender your existing registration.

also read:
http://wbexcise.gov.in/writereaddata/site-shifting.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2012 thanks a lot

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