Can we remove excisablle goods from factory on Challan

[Guest]

Dear Sir,

Can we remove excisable goods from our factory on delevery Challan after that we will generate the Excise Invoice ?

Regards

Swapneswar

[YAGAY andSUN]

For job work, yes. For finished goods and inputs/raw material/components sales, No. Invoice under Rule 11 of Central Excise Rules,2002 is mandatory.

[MADAN RAHEJA]

No. Rule 11 of Central Excise Rules, 2002 clearly prohibits it. The Rule reads as

11 (1) No excisable goods shall be removed from a factory or a warehouse except under an invoice signed by the owner of the factory or his authorized agent and in the case of cigarettes, each such invoice shall also be countersigned by the Inspector of Central Excise or the Superintendent of Central Excise before the cigarettes are removed from the factory:

[KASTURI SETHI]

No challan, form, document etc. has been prescribed for movement of excisable goods (inputs or partially processed inputs/semi finished goods) from a factory to another factory for job-work under Central Excise Rules, 2002. Procedure for job-work has been laid down under Rule 16 A, 16 B and Rule 16 C of Central Excise Rules, 2002.Procedure has also been laid down under Notification No.214/86-CE dated 25.3.1986 as amended.However, under Rule 31 of Central Excise Rules, 2002, the Chief Commissioner or Commissioner may issue written instructions providing for any incidental or supplementary matters, consistent with the provisions of the Act and these rules. In pursuance of this Rule, Commissioner, CE, Ahmedabad-II has issued Trade Notice No.36/2003-CE dated 13.3.2003 wherein Challan has been prescribed for the said purpose. This challan has been numbered as ANNEXURE-60 in R.K.Jain's CE Manual at page 7.96.Similarly, the Commissioner, CE, Mumbai-II vide Trade Notice No.13/2006-CE dated 31.8.2006 has prescribed the details/particulars in the document for the job-work purpose.

[Mahir S]

Such procedure is still in force at some places ; however as per Rule it is not proper and correct procedure.

Invoice should always accompany excisable goods cleared from factory premises.

Refer rule 11 of C.Excise rules 2002 in detail, as already explained above.

AI Summary

Invoice requirement for removal of excisable goods: invoice mandatory for removals, with limited job-work challans permitted. Removal of excisable goods from a factory normally requires an invoice signed by the owner or authorised agent; delivery challans are not acceptable for sales or finished goods. Job-work movements follow specific job-work procedures and notifications and, in some jurisdictions, Commissioners have authorised local trade notices prescribing challans or document formats for such transfers, but these local practices do not override the general invoice requirement for removals for sale or final clearance.