Storage of duty free inputs procured under advance authorisation out side factory premises.

[Narendra Soni]

Dear Experts,

Kindly suggest Method / Rule / Notification under which we can storage duty free inputs procured under advance authorisation out side factory premises.

Our case is :- We procured duty free inputs under advance authorisation and first shift directly in our godawn located out side factory premises due to space problem in factory, the godawn is not registered in central excise, there after we brought inputs to factory as and when required and prepared MRN & maintain records accordingly, kindly suggest any permission is required for it if yes, please specify Rule/Notification.

[PAWAN KUMAR]

Dear Sir,

you are required to obtain an permission under rule 8 of Cenvat Credit Rules, 2004.

[MUKUND THAKKAR]

There is no any circular or notification regarding storage of inputs duty free under advance authorization out side the factory , you may contact your division office and get it approval as special case the only option you have.

[Mahir S]

You need to take prior approval and permission with necessary conditions from the jurisdictional Commissioner and only thereafter you can keep the imported inputs at godown.

The jurisdictional range officer shall guide you in the matter.

[Rajagopalan Ranganathan]

Sir,

Advance Authorization holders are required to file a bond with 100% Bank Guarantee for the duty difference at the time of import of duty free inputs. Therefore it is your responsibility to keep the duty free inputs under advance authorization in safe custody. Department is not concerned where and how you keeping the duty free inputs obtained under advance authorisation. If you do not account for the inputs to the satisfaction of Customs Authority then duty will be demanded from you with interest. Penalty may also imposed on you.

AI Summary

Storage of duty free inputs under advance authorisation requires prior permission and strict custody and accounting safeguards.
Storage of duty free inputs procured under an advance authorisation outside factory premises requires prior permission from the competent customs/central excise authority or jurisdictional Commissioner and compliance with conditions under the cenvat/advance authorisation framework. Holders must maintain custody, file requisite security backed by a bank guarantee for duty difference, and keep records (MRNs and stock accounts); failure to account satisfactorily may result in duty demands with interest and penalties.