Storage of input outside factory prior to availing cenvat credit

[Yatin Bhopi]

We are manufacturer. We import our input on payment of applicable custom duties. We have imported our input in excess of storage space available in the factory. We wish to store this excess input outside the factory in nearby warehouse. We will not avail the CENVAT credit till the actual receipt of the input in the factory.

My query is:  Can we store this input after paying duties and clearing from customs out side factory?  

[YAGAY andSUN]

You need to seek permission from the Jurisdictional Commissioner in this regards under Rule 4(4).

[CA.S Ganesh]

dear friend,

once u paid the duty and cleared the goods from custom authority, you can eligible for cenvat credit.

but, you can take credit, provides you have excise registration for that place where u have stored that goods.

if your company has registered with excise authorities to store the goods as warehouse, u can eligible to take the moment in which the goods are reached the warehouse.

[MANDAVILLI RAMAKRISHNA]

apply for permission to the AC/ SUPDT. concerned requesting temporary permission

to store goods outside the unit otherwise, if they make any inspection, it will be problem.

[RAMNIRANJAN KANDOI]

Dear Yatin,

As per Rule 8 of CCR, 2004, permission from Dy./Asst. Commissioner is required only if credit is to be taken

for Inputs stored outside the factory premises..If credit is not taken than permission is not required.You can take credit after you bring full consignment in the factory.

[MUKUND THAKKAR]

Dear ,

it is seems  that  you  have  brings  the  inputs  in your  factory, once  you brings the inputs in factory is elgiable  to take cenvat credit, if inputs  covered  in cenvat defination. now in your  case  your are facing  the problem of  storage. in such  situation  you have  to have  seek permission from JC. for  storage  of  inputs  out  side the factory primises.

Mukund Thakkar

[Guest]

You can store duty paid inputs at a warehouse other than you registered premises, however you can avail the CREDIT only after the inputs are brought to the Registered premises.

[RAMNIRANJAN KANDOI]

Yes, I agree the comments.One can store Input outside factory premises & take credit only after receipt of full quantity of the Invoice.

AI Summary

CENVAT credit entitlement requires inputs be brought to registered premises; external storage allowed but credit deferred until receipt. Manufacturers may store duty-paid imported inputs outside factory premises, but CENVAT credit may be claimed only after actual receipt at the registered factory premises or at a warehouse for which the manufacturer holds excise registration; taking credit while inputs remain off site requires prior permission from the appropriate excise authority.