Transfer of goods to godown without payment of duty

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Mitul Shah (Querist)
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22 January 2014 Dear Sir,

An assessee has transferred goods to its godown without payment of duty as there was a shortage in factory premises. intimation or prior permission of excise officer was not sought for this. Central excise officers comes to factory premises for physical verification of goods & found descrepancy. He is asking for duty & penalty. Kindly provide what remedies are there with the assessee? Goods are bought back to factory premises but excise officer is denying for further verification and asking for duty.

Kindly suggest on what stand assessee can take? further provide case laws & judgements if any. Thanks in advance.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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22 January 2014 You can not transferred the goods outside factory without payment of duty. You should take the permission for it. Department can impose the duty with interest and penalty for removal of goods without payment of duty outside factory.

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