Procedure - taking godown - billing system

[CABIJENDERKUMAR BANSAL]

DEAR ALL, A MANFACUTIRNG COMPANY PRODUCING EXCISABLE PRODUCTS, WANT TO TAKE A GODOWN IN SAME CITY FOR DISPATCH FINISHED GOODS TO PARTY FROM THERE. WHAT ARE THE PROCEDURE FOR TAKEN THIS GODOWN? WHETHER BILLING IS TO MADE FROM GODOWN TO PARTY OR DIRECTLY FROM COMPANY? PLEASE FEEDBACK THE QUERY. THANKS & REGARDS CA. B.K.BANSAL

[Guest]

You can sale the goods through godown (Depot). There is no restriction in this respect. The provisions of Central Excise Valuation Rules would be applicable in this case i.e Invoice shall be made from factory to depot at the sale price of that goods from the depot. If the manufacture wants to issue an excise invoice from the depot to enable the buyers to claim cenvat credit, depot is required to obtain central excise registration in the capacity of Depot / Branch / Godown of the manufacturer.

AI Summary

Central excise registration requirement: depot must register to issue excise invoices enabling cenvat credit for manufacturer supply. Manufacturer may invoice goods from the factory to the depot at the depot sale price under the Central Excise Valuation Rules. If the depot is to issue excise invoices that enable purchasers to claim cenvat credit, the depot must obtain central excise registration as a Depot/Branch/Godown of the manufacturer; without that registration the depot cannot validly issue such excise invoices.