Removal of goods

[Guest]

What is the procedure laid down in Central Excise laws for removal of goods for demonstration/trial run/exhibition/road shows etc.?

[Snehal Kulkarni]

Mr Ganguly,

Manufactured goods should be clear on payment of appropriate Central Excise Duty, since the liability of the manufactuere to pay the excise duty arose after existance of the goods.

In our view, if you are clearing the goods for the subject purpose in the domestic market, then remvoe the goods on payment of duty and take the cenvat credit after receipt of the goods in the factory.

 

AI Summary

Removal of goods for demonstration requires payment of appropriate excise duty before clearance, with cenvat credit on return. Removal of goods for demonstration, trial runs, exhibitions or road shows in the domestic market must be cleared on payment of the appropriate Central Excise duty because the manufacturer's liability arises once the goods exist; cenvat credit may be taken after the goods are received back in the factory.