Warehousing of Trading Goods

[A Wilson]

Dear Experts,

Pls give your valuable inputs on the following:

ABC Ltd, located in Gujarat, an Importer(Dealer registered under central excise) imports goods(Chemicals) from foreign country through Chennai Port. ABC Ltd cleared the goods from the chennai Port by paying the appropriate duty. 

Due to inadequate storage space in ABC Ltd- warehouse(Gujarat), ABC Ltd approach XYZ Ltd(a Logistics & Warehousing company) to store the goods in their ware house located in chennai and wants to make sales(Billing) from Gujrat premises whenever order received from the customers(Karnataka State)

Is it permissible under central excise and sales tax?

If permissible, What are the documentations to be carried while sales?

Thanks & Regards,

A.Wilson

[YAGAY andSUN]

We understand that you are not a registered dealer under Central Excise as well as under VAT/CST Act in TamilNadu (Chennai) and you are registered dealer in Gujarat.

You cannot raise an Invoice from Gujarat and move the goods from Chennai.

You would have to seek specific permissions/registration for the same under TNVAT Act, 2005 and Central Excise Act, 1944.

AI Summary

Registration requirement: Third party storage in another state forbids invoicing from home state without local registrations and permissions. Where imported goods cleared on payment of duty are stored by a third party in another state, the trader must obtain local VAT/CST registration and any requisite permissions under the state VAT law, and ensure Central Excise Act compliance; invoicing from the home state while goods are physically in another state is not permissible without these registrations and permissions.