Due to shortage of space the assessee wants to move the goods outside the factory by debiting the duty. Can the Assessee raise invoice subsequently to the customers refereing to the duty debited initially at the time of moving the goods outside the factory.
Alternatively can the assessee take recredit of the goods if the goods are moved in and then invoiced to the customers and pay the tax .
Please let me know the provions underwhich we can carry out the above transaction.
Obtaining the permission from the Department for such a transaction is lenghty affair and hence the alternative proposals are made
Guidelines for Storing Goods Outside Factory: Rule 8 of Cenvat Credit Rules 2004 and Rule 4(4) of Central Excise Rules 2002. An individual inquired about the procedures for moving goods outside a factory due to space constraints, specifically regarding excise duty and invoicing. Respondents advised that under Rule 8 of the Cenvat Credit Rules 2004, permission from the jurisdictional authority is required to store goods outside the factory without reversing Cenvat credit. For finished goods, Rule 4(4) of the Central Excise Rules 2002 applies, requiring permission from the Commissioner. The discussion included references to legal manuals and circulars, emphasizing that simultaneous storage of duty-paid inputs and non-duty-paid finished goods is not allowed. The process for obtaining necessary permissions was described as not lengthy if documentation is clear. (AI Summary)
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