Difference between Manufacturing Depot and Warehouse

[Guest]

Dear Sir,

Please explain the difference between Manufacturing Depot and Warehouse, Further under Manufacturing Depot registered under Excise whether any manufacturing activity can be carried out and vice - versa the same for warehouse also, Please explain,thanks & regards.

[Rajagopalan Ranganathan]

Sir,

Under Central Excise Act, 1944 there is no concept of manufacturing Depot. If manufacture takes place in any premises then it is called the factory under section 2 (f) of Central Excise Act, 1944. Depot is a place where duty paid excisable goods are sold to ultimate customers. Manufacture in a warehouse is permitted under Customs Act, 1962. Please refer to para 17 of CBEC's Customs Manual, 2011 for detailed procedure.

[YAGAY andSUN]

A perfect reply from an Expert. Keep it up Sir.

AI Summary

Clarification on Central Excise: No Manufacturing Depot Concept; Manufacturing in Warehouses Allowed Under Customs Act, 1962. A query was raised regarding the distinction between a manufacturing depot and a warehouse under Central Excise regulations. It was clarified that the Central Excise Act, 1944 does not recognize the concept of a manufacturing depot. A factory is defined as a place where manufacturing occurs, according to the Act. Depots are locations where duty-paid excisable goods are sold to final customers. Manufacturing within a warehouse is allowed under the Customs Act, 1962. A respondent confirmed the accuracy of this explanation, referencing the Customs Manual for further details.