To keep Finished Goods in our other unit as storage

[SURYAKANT MITHBAVKAR]

We have three units registered under Excise Act and one unit is unregistered where we are doing only Job Works. Due to insufficient place for work in one unit can we cleared finished goods after preparing invoice in the name of customer on payment of excise duty and keep that goods for time being in our unregistered unit instead of deliver to customer since customer is not clear the payment. After receiving the payment from customer as per order same goods we will deliver to customer.

[Surender Gupta]

As long as you remove the goods on payment of duty of excise to a unregistered unit, there is no problem under central excise from the manufacturer point of view. But there would be an issue from the buyer's end, if the buyer of goods like to purchase the goods on duty paying documents, you can not supply the goods from unregistered premises to buyer on a duty paying document.

[Snehal Kulkarni]

Rule 4(4) of CER2002 allows you to store the goods without payment of duty at any unregistered premises subject to the fulfillment of the conditions as specified by the Jurisdictional Commissioner of Central Excise

You may approach to the Commissioner with the fact and get the permission. You can raised the Invoice from the Registered Premises and directly clear the goods from the unregistered premises.

 

AI Summary

Storage of excisable goods: manufacturers may keep goods at unregistered premises after duty payment, but buyer supply limits apply. Manufacturers may transfer finished goods to an unregistered unit after payment of excise duty without breaching central excise obligations, but supplies from unregistered premises cannot be made to buyers who require duty paying documents. Alternatively, storage at unregistered premises without immediate duty payment is allowed subject to the jurisdictional Commissioner's prescribed conditions and permission, with invoices raised from the registered premises and clearance from the unregistered location only in compliance with those conditions.