PLACE OF REMOVAL - For Duty Payment

[AKASH DUBEY]

I am manufacturing chemicals and selling in my brand with duty calculation on MRP Basis.

Now, the condition is that, I have to first transfer my stock to various depots and then sell them to my dealers. In this process, at present, I am paying Excise Duty at the time of Stock Transfer to my own depot. This needs a lot of money investment as I am arranging raw materials and over that Excise Duty is also adding up with a considerable amount due to calculation on MRP Basis (Not sale value)

I want to know that, how to declare that my actual PLACE OF REMOVAL (Sale) is my depot and want to pay duty at the time of real sale.

I read in Excise Manual, that Place of Removal can be the depots or consignment agent, but unable to find out the exact procedure.

Regards,

Akash Dubey

[MUKUND THAKKAR]

Sir,

I want to know that, how to declare that my actual PLACE OF REMOVAL (Sale) is my depot and want to pay duty at the time of real sale.

you can not cleared your goods from your factory to depot without payments of duty. place of removal is part of your factory.so clearance from your factory to depot under stock transfer excise duty need to pay as per rules their is no other option.

if you want to pay the duty during the time of removal from the place of removal you have to obtain the permission from your commissioner for storage the finished goods out side the factory and paying the duty at the time of clearance. you can not store your finished goods in depot. separate place is required for the same.

.

[AKASH DUBEY]

Place of removal mentioned in the following document is for only CENVAT or Duty Payment

Circular No. 988/12/2014-CX

 

[Ganeshan Kalyani]

Place of removal for paying excise duty is factory gate. Exciseable goods cannot be removed without payment of duty.

[Vijay kumar]

Please read Rule 7 of Central Excise (determination of value of excisable goods) Rules, 2000. Accordingly, you are required to pay excise duty at the factory (the first place of removal) since there is no sale on account of stock transfer to the depot. Duty has to be paid at the price prevailing at the depot, nearest to the place of removal.

If you want to pay duty at the depot, apply to the jurisdictional commissioner for permission under rule 4(4) of Central Excise Rules, 2002. Other than this, you have no option to pay duty at the depot.

[AKASH DUBEY]

Mr Vijay Kumar,

Can I get permission as per Rule 4(4), for my depots at far away places, like different states ?

Akash

AI Summary

Place of removal: factory gate prescribes immediate excise duty unless commissioner permits outside storage and deferment. The central issue is whether duty on stock transfers to company depots can be deferred until sale at the depot. The document states the place of removal is the factory gate, so excise duty is payable on clearance from the factory. Deferring payment until depot clearance requires prior permission from the commissioner to store finished goods outside the factory; absent that authorization goods cannot be removed without paying duty.