Removal of any material from factory

[Guest]

Dear Sir,

We are a manufacture if we want to send any material or any Equipment for service purpose to out side than on which paper we should send.

Regads

Swapneswar

[Ganeshan Kalyani]

Which service you mean to say? As per provision the input can be send outside the factory based on "Gatepass for returnable goods" or "Returnable gate pass". But only after you write the actual purpose of sending goods we cannot discuss the reply properly.

[Ganeshan Kalyani]

* Sorry 'cannot' be read as 'can'. Typed mistakenly.

[Guest]

Dear Kalyani Sir,

Send this equipment for service means regular periodically service for keeping it in running condition.

Regards

Swapneswar Muduli

[Ganeshan Kalyani]

If it so you can refer on my reply dated 20.11.2015.

[YAGAY andSUN]

Dear Swapneswar,

On Challan you can send material or equipment. Please check following provisions before sending it outside of your factory premises.

1. Notification No. 214/86-C.E.
2. Rule 4 (5) (a)
3. Rule 16A
4. Rule 16B
5. Rule 16C

You would have to choose the appropriate provision depending on the nature of work done on your material or equipment and should be returned back with in prescribed time limit.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Sir,

(i) Please make an application to Division office through Range to obtain the Permission for service of equipments. Mention the exact place for service and reason to send. You are also required to prepare a challan in duplicate to send the material for service, Inward & outward time noting at main gate, stamp or slip of weight/description/made done. The permission may be granted for one year as per request.

For any mischief, duty will be recovered and goods may seized.

Such permission used to be given for weighment of goods outside factory premises.

(ii) Else you may send it on serially numbered and dated returnable gate passes, as discussed above by Mr. Ganeshan kalyani and intimate Range office at time of clearance of such material/equipment for service and again at time of receipt of them in the factory premises.

(iii) If the material and equipment are non cenvatable, then you can clear it on returnable gate passes and no need for any intimation to excise department

AI Summary

Returnable gate pass allows temporary removal of factory equipment for servicing, subject to prescribed provisions, permissions, and return obligations. Removal of factory materials or equipment for external servicing may be effected under a returnable gate pass or by a challan, chosen according to the nature of work and applicable excise provisions; prior permission from the Division through the Range may be required, duplicate challans and gate records must be maintained, return is time bound, misuse can attract duty recovery and seizure, and non cenvatable items may be moved on returnable gate passes without departmental intimation.