Time of removal of goods

[Deepak Bhardwaj]

Dear all,

What is the maximum time of duty paid goods removal? in other words if we make an invoice on 01st Aug 14. than what is the maximum time limit to remove the duty paid goods from premises.

in other words time of removal can be more than 24 hrs ?

please reply.

[YAGAY andSUN]

Dear Deepak,

Though, it was specified in the old Rules that goods must removed within 24 hours from the time of dispatch. But in the new Rules there is no specific provision in this regard. Generally, it is deemed that goods must be removed within 2-3 hours after putting the time of removal on invoice, this is mandatory for not only Central Excise perspective but also VAT/CST perspective.

This time may be extended on the event of any adverse circumstances, if occurred, such as non availability of transport, strikes, curfews etc. An intimation should be provided to the Central Excise Department and VAT/CST Department in this regard to cope with any unwarranted situations which may arise due to non dispatch of goods even after issuance of Invoice.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

Faridabad 121001

Mobile:- 9818131923

E-Mail:- yagaysun@india.com

[PAWAN KUMAR]

Dear Sir,

As such there is no specific provision in the law. If you put the removal date and time on the invoice/bill, it means goods have been removed from the factory on such date and on such time.

If the vehicle in which the goods have loaded, is hold for some reason and you already put the date and time of removal on the invoice/bill, please put again the actual date and time striking the old date and time of removal and signed over there with dully stamped. It should be in rear case only.

[Rajagopalan Ranganathan]

Sir,

Normally the goods shall be removed before closing the operation for the day in which the invoice/bill is prepared. Normally time of removal will be put just half-an-hour or so before the truck leaves the factory premises. If due to non-availability of transport or strike or curfew, then cancel the invoice and prepare a new one on the day in which the goods are removed.

[Mahir S]

Sir,

I advise that goods should be removed in few hours of the time of removal, if there is no any genuine reason for not removing it.

If there is any sudden unexpected physical checks from the department, then they may come to the conclusion that goods are being removed time and again on the same invoice, especially if the delivery place is in the same city or to any nearby places.

Hence, it would be better to cancel the invoice if goods are not to be removed instantly.

AI Summary

Time of removal of duty paid goods: prompt dispatch or invoice correction required to avoid regulatory scrutiny. There is no specific statutory maximum interval for removal of duty paid goods; practice expects removal within a few hours after the invoice time is recorded. The invoice must show the time of removal; genuine delays (transport, strikes, curfew, checks) should be notified to excise and VAT/CST authorities. If a vehicle is held after the stated time, strike out and re enter the actual removal date/time with signature, or cancel and reissue the invoice on the day of dispatch to avoid departmental scrutiny.