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Ware house provision

Ram kr. (Buisness) (883 Points)

09 January 2013

Dear Experts,

We are registered manufacturer under central excise rule. Due to shortage of space we want to make a warehouse near the manufacturing premises for Raw Material and Finished Goods. We want to store all type of material like input and finished goods without payment of duty . What is the procedure and best option in this regards. Pl suggest.

Thanks

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4 Replies

Arun Kumar Singh (GST Advocate) (15203 Points)
Replied 11 January 2013

The central government may by notification, extend the facility of removal of any excisable goods from the factory of producion to a warehouse, or from one warehouse to another warehouse without payment of duty under rule 20 of central excise rules 2002.

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Ram kr. (Buisness) (883 Points)
Replied 11 January 2013

is it possible. We want to store finished goods without payment of duty in warehouse outside the factory as soon as possible.

Thanks

Arun Kumar Singh (GST Advocate) (15203 Points)
Replied 11 January 2013

Normally, goods can be cleared from factory only after payment of duty or to another warehouse without payment of duty. However, in exceptional case having regard to nature of goods and shortage of storage premises of the manufacturer where goods are made, Commissioner can permit storage of goods in any other premises outside the factory without payment of duty under rule 4(4) of central excise rules 2002.

Ram kr. (Buisness) (883 Points)
Replied 12 January 2013

Dear Sir, It is very difficult to take whole time permission from commissioner. Is it any other option to store finished goods outside the factory. What is the difference between a Dealer and warehouse provision for store the goods. Can we adopt one of these for this purpose. Pl clerify.

Thanks