Deport/Warehouse procdure

[SURYAJI GAWAS]

Dear Sir,

My factory in maharashtra and I want open Depot/Warehouse in another state as like culcutta then what is the excise procedure? Should I take excise registration for that warehouse?

[Ganeshan Kalyani]

Sir, on removal of goods from factory you have to pay Excise Duty. From warehouse if you are going to sell the same goods received from factory to a manufacturer then in order to pass on the Duty you can take Central Excise registration, otherwise not required to register the warehouse under excise. Thanks.

[Rajagopalan Ranganathan]

Sir,

I endorse the views of Shri. Ganesan Kalyani Sir. If you want to pass on the cenvat duty paid on the excisable goods as credit under Cenvat Credit Rules, 2004 then you have to register your Calcutta warehouse/godown as first stage dealer under rule 9 of Central Excise Rules, 2002. Otherwise you need not register yourself as first stage dealer under the above mentioned rule.

AI Summary

Excise registration depends on whether a warehouse is used to pass on duty and enable input credit to the buyer. Whether a warehouse in another state requires Central Excise registration depends on its role: storage-only warehouses need not register, but where the warehouse is used to pass on excise duty or enable the buyer to claim duty as Cenvat credit, it must be registered as a first stage dealer under the Central Excise rules to permit transfer of duty credit.