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.

AI Summary

Storing Duty-Free Inputs Offsite? Ensure Compliance with Rule 8 of Cenvat Credit Rules, 2004 to Avoid Penalties. A discussion on a forum addresses the storage of duty-free inputs procured under advance authorization outside factory premises. The issue arises due to space constraints, leading to storage in an unregistered godown. Experts advise obtaining permission under Rule 8 of the Cenvat Credit Rules, 2004, or seeking approval from the jurisdictional Commissioner. It is emphasized that maintaining proper records and securing inputs is crucial, as failure to account for them may result in demands for duty payment with interest and potential penalties.