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

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.