outside storage - application format.

[Santosh Mali]

Dear All,

We are in manufacturing for automotive parts. due to some proposed changes from the customer in the product. the supplier chain process is going to change. For that we have to procure some of inputs for 4 months stock but we have insufficient storage area in our premises.

Rule 8 of CCR, 2004 allows to storage of input outside the factory of the manufacturer.

the said rule is as under : 'The Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of a manufacturer of the final products may, in exceptional circumstances having regard to the nature of the goods and shortage of storage space at the premises of such manufacturer, by an order, permit such manufacturer to store the input in respect of which CENVAT credit has been taken, outside such factory, subject to such limitations and conditions as he may specify:
Provided that where such input is not used in the manner specified in these rules for any reason whatsoever, the manufacturer of the final products shall pay an amount equal to the credit availed in respect of such input.'

Does anyone have the format of the application for above purpose. please provide

[KASTURI SETHI]

There is no prescribed pro forma/format. Only undertaking on the letter head would serve the purpose.

AI Summary

Outside storage permission permits storing inputs externally subject to conditions and repayment obligation; undertaking on letterhead required. The Deputy Commissioner or Assistant Commissioner may permit a manufacturer to store inputs outside the factory in exceptional circumstances, subject to specified limitations and conditions, and the manufacturer must repay an amount equal to the credit availed if the input is not used as prescribed; no prescribed application format exists and an undertaking on the manufacturer's letterhead is sufficient.