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

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.