storage of Finished goods to another unit

[kamal chordia]

Dear Sir

Please note that if a company having 3 unit and having separate central excise registration. Due to heavy stock accumulation in one unit, can finished goods of this unit can be stored in another unit which is adjoining to first unit.

Or

We need to take permission from Asstt. Comm., C.E.

Kamal

[KASTURI SETHI]

You will have to seek permission from A.C./D.C. under Rule 8 of Cenvat Credit Rules, 2004.

[MADAN RAHEJA]

Dear Sir,In my view correct Rule in this regard is Rule 4(4) of Central Excise Rules, 2002 whereunder Commissioner/Principal Commissioner have been empowered to grant permission to store finished goods outside factory premises under exceptional circumstances keeping in view nature of goods and shortage of space. Rule 8 of CCR is not for finished goods but for storage of cenvatable inputs outside manufacturing premises.

[Suryanarayana Sathineni]

Dear Friend,

As already stated, RUle 4 of CE Rules provides for such permission subject to certain conditions with respect to certain goods based on nature etc., Generally, this permission will be considered for seasonal products like Sugar et., and not for other goods.

I had an experience on the similar issue

Further, Rule 4 only says storage of goods in other place/premises and not clear whether other unit of the same manufacturer can also cover under this provision.

Instead, why don't you explore the possibility of single Registration in terms of the newly introduced provisions in the Budget since your units are situated in the same area this not only avoids multiple returns but also to address the storage problems.

Best Regards

Suryanarayana

[Ganeshan Kalyani]

Perfect solution is given by Sri Surya Sir. When there is provision the benefits of it should be availed. Thanks.

[kamal chordia]

Dear Sir

Thanks to Shri Kasturi Sir, Shri MadanSir and Shri Surya Sir for valuable guideline.

Regards

Kamal Chordia

AI Summary

Company Needs Permission to Store Goods in Adjoining Unit Under Rule 4(4) of Central Excise Rules, 2002 A company with three units, each having separate central excise registration, faces heavy stock accumulation in one unit. The query is whether finished goods can be stored in another adjoining unit without permission. Responses suggest that permission from the Assistant Commissioner or Deputy Commissioner is needed under Rule 4(4) of the Central Excise Rules, 2002, which allows for storage outside factory premises under exceptional circumstances. It is noted that this rule typically applies to seasonal goods. An alternative suggestion is to explore single registration for units in the same area to simplify processes and address storage issues.