Factory to wearhouse matl sent

[venkat eswaran]

Sir,

Whether the Excise duty to be paid for the finished goods sending from factory to wearhouse?

[YAGAY and SUN]

Yes, since material is being removed from the factory premises, Excise duty is required to be paid.

[Shivshankar Mishra]

Dear,

As per Excise rules you can clear your materials with payment of duty from Manufacturing to warehouse.

[MANDAVILLI RAMAKRISHNA]

you should have registration for your wear house also.

since you have no profit margin, no need to pay duty. but you have to show the assessable value and the duty thereon clearly in the invoice and in the RG registers, set it off against hte input duty.

 

really, i experienced, all the procedure is a big drama

[Harishanker Patel]

Dear Ramakrishna Sir,

Kindly clarify the such provision,rules supporting your view.

[Shivshankar Mishra]

Dear,

If your warehouse is registered with Excise department then you have pass excise duty to your customers other wise you make warehouse invoice which are not cenvatable

[MANDAVILLI RAMAKRISHNA]

mr. harisankar,

 

it is purely practical procedure and to be followed exactly in rg registers.

of course, you may take guidance form local centax officials or consultants also.

rk

09000016080

[Harishanker Patel]

Dear Ramakrishna Sir,

I want to know that in which case & provisions there is no need to pay duty for the finished goods sending from factory to wearhouse.

[rajkumar shukla]

I can not understand the replies given by mr. Ramakrishna. Any way  the confusing repies have prompted me to intervene. firstly ware housing provisions in central excise have been with drawn since 2004 and there are no non duty paid warehouse in central excise now except for export purpose. However comissioner can still permit storage of non duty paid goods considering special circumstances of case like storage problems etc (see rule 4(4) of central excise rules )but that need not be registered separately as these are not ware houses in strict sense as goods manufactured are not declared under warehousing provisions. however procedures for removals under rule 4(4) followed are of ware housing.

[Shivshankar Mishra]

Dear Mr RajKumar,

We are replying regarding warehouse not for Finished goods storages outside premisesif you ant clear your finished goods for your ware house you have to pay excise duty and clear from your factory. from ware house if you are registred you amke excise invoice otherwise you make ware house invoice for commercial purpose.

[rajkumar shukla]

pl reconsider the language. nothing is coming out which could be replied.

[MANDAVILLI RAMAKRISHNA]

Dear Friends,

The initial question was Whether the Excise duty to be paid for the finished goods sending from factory to wearhouse?

But the discussion took wrong track, commenting on language or gramatical mistakes.

 

In my opinion, Excise duty need not be paid for the finished goods sending from Factory to Wearhouse

since,

1. even though registrations are mandate both for factory and wearhouse and invoice to be compulsory raised for removal of goods to wearhouse from factory, mere commercial invoice is not sufficient and Central excise Gate pass in the prescribed format to be prepared wherein the qty, assessable value, duty there on to be mentioned clearly and therefore, certain amount will be arrived as duty payable for removal of goods from factory to wearhouse.

2. like wise, input can be taken for the inward goods taken from factory and if it is assumed that the goods laid in the wearhouse for a long time i.e., up to the month ending, then no duty is required to be paid since the central excise duty liability will be arrived registered premises wise and the net result will be arrived.

 

Now please clarify.

[MANDAVILLI RAMAKRISHNA]

My doubt is, is it compulsory to pay duty on removals meant for wear house even in the case, stocks are

piled up for suppose 3 months in wearhouse.

[Shivshankar Mishra]

Dear Mr Raj Kumar,

First you clear in your mind what is meaning of excise then you know what any body want to say you or reply to you. UNDERSTAND SIRJI

[rajkumar shukla]

Dear Mishra ji,

                     Prior to moving ahead with our discussion let me make it explicitly clear that while giving the phrase 'reconsider the language' in my earlier proffering i was not intended by any stretch of imagination, for reconsidering the language or grammer in literal terms. It was planely meant that whatever facts regarding warehousing provisions were given by me were supposed to be examined vis-a-vis the Central Excise manual/concerned Notifications so as to arrive at the correct legal position in the matter.

Now after elucidating my intention behind what i have written, let me now turn towards your words about 'knowing the excise'. Sir, without any hesitation, even remotest, i feel myself quite clear with the meaning of 'Excise' and its scope, as well. It is for this sake only that i have intervened and quoted the concerned position as available within the domain of 'Excise' because i could visualise that during entire discussion in the matter no comment could come on the surface with proper backing or substantiation by the concerned Rules/Notifications or even Circulars. Entire discussion was just looming in the air without any proper base or substantiations. It was much surprising to see that the person who tries to preach others about the meaning of 'Excise' himself has not supported his version with any sort of Rule or so, whatsoever. How such practice can be differentiated from "Double Standard" practices. Be as it may but if you are having some more 'Excise' please let it come forward to the discussion forum for the benefit of others and for saving your own position.

                                                                  Hearty regards 

AI Summary

Excise duty on removals to warehouse generally payable; limited non-duty storage may be permitted by commissioner in special circumstances.
Removal of finished goods from a factory to an external warehouse generally attracts excise duty and must be supported by excise invoicing and gate pass documentation showing quantity, assessable value and duty. Warehousing exemptions for non-duty paid storage have largely been withdrawn; non-duty storage may be allowed only in limited cases with commissioner permission. Proper registers must record removals and permit input duty set-off so that net duty position for registered premises is determined.