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

Manufacturing depot concept absent under central excise; factories govern manufacture while customs allows warehouse manufacture. Under the Central Excise regime there is no legal category of a manufacturing depot; premises where manufacture occurs are characterized as a factory under section 2(f). A depot is a place where duty paid excisable goods are sold to ultimate consumers. Manufacture within a warehouse is permitted under the Customs Act, 1962 and regulated by Customs procedures.