Stock Transfer To Godown Without Payemnt Of Duty

[Avinash Bhavsar]

Dear Sir,

Is it any rule from factory to godown stock transfer of without payemnt of EXCISE duty and VAT, factory at NAshik and Godown in Pune both in Maharastra State.

 

[YAGAY and SUN]

You would have to take permission from the Chief Commissioner of Central Excise in this regards.

[Avinash Bhavsar]

Dear Sir,

Which rule we apply

[YAGAY and SUN]

Under Rule 4(4) of the CENVAT credit Rules 2002:-

(4) Notwithstanding anything contained in sub-rule (1), Commissioner may, in exceptional circumstances having regard to the nature of the goods and shortage of storage space at the premises of the manufacturer where the goods are made, permit a manufacturer to store his goods in any other place outside such premises, without payment of duty subject to such conditions as he may specify.

[Avinash Bhavsar]

Dear Sir,

I mean Final Product transfer to godown from factory without payment of duty. From Godown we remove the material?

[rajkumar shukla]

this is the same query that has already been replied by me on 26/03/2012

[Avinash Bhavsar]

Dear Sir,

 

On 26/03/12 I ask for only godown but now my query is without payemnt of Final Products transfer query is diffence

[rajkumar shukla]

pl go through my the reply thoroughly..

[Vijay kumar]

Dear Sir,  though Rule 4(4) of Central Excise Rule, 2002, (and not  Cenvat Credit Rule, 2004 as mentioned by Sri Pradeep Khatri) provides for such permission by the Commissioner, obviously this provision is meant for a place nearby the factory on account of shortage of space/ nature of goods and not different towns altogether falling under different Commissioen rates. The norm under Central Excise law is - pay duty on clearance from factory - be it sale or stock transfer. I have no idea regarding VAT.

Regards - Vijay Kumar.

[Mahir S]

It shall be very difficult to such a permission from the department as both the places fall under different Excise Commissionerate. It would be appropratie to take a Godown as well as a Dealer's registration licence at Pune and store the goods after stock transferring the said goods and then sell the goods from Pune under dealer registration invoice..

I am not able to offer any comments on the VAT aspect.

AI Summary

Duty payment on stock transfer: manufacturer must generally pay excise on clearance; permission to store elsewhere is exceptional.
Manufacturers must obtain Commissioner permission to store finished goods outside factory premises in exceptional circumstances; ordinarily excise duty is payable on clearance from the factory for both sales and stock transfers, and permissions to defer duty are unlikely for storage in locations under different Commissionerates. As alternatives, obtain Commissioner permission where justified or secure a destination godown and dealer registration and effect a stock transfer with subsequent sale; VAT implications must be handled separately.