STORE INPUT AND FINISHED GOODS

[RAM SHARMA]

Dear Experts,

Due shortage of warehouse in manufacturing premises we want to store input material and finised goods to another manufacturing unit. Can we do it ? Pl tell procedure.

Thanks&Regards

[YAGAY andSUN]

Please check the Rule 8 of the CENVAT credit Rules, 2004 as amended time to time.  But this rules speaks about only Inputs.

For, Finished goods discuss it with The Commissioner of Central Excise, and obtain the necessary permission.

[RAM SHARMA]

Can we consider following rule for removal of finished goods without payment of duty.

RULE 20  Warehousing provisions. — (1) The Central Government may by notification, extend the facility of removal of any excisable goods from the factory of production to a warehouse, or from one warehouse to another warehouse without payment of duty.

(2) The facility under sub-rule (1) shall be available subject to such conditions, including penalty and interest, limitations, including limitation with respect to the period for which the goods may remain in the warehouse, and safeguards and procedure, including in the matters relating to dispatch, movement, receipt, accountal and disposal of such goods, as may be specified by the Board.

(3) The responsibility for payment of duty on the goods that are removed from the factory of production to a warehouse or from one warehouse to another warehouse shall be upon the consignee.

(4) If the goods dispatched for warehousing or re-warehousing are not received in the warehouse, the responsibility for payment of duty shall be upon the consignor.

AI Summary

Warehousing provisions allow removal of excisable goods to warehouses without duty, subject to conditions and consignee liability. Warehousing provisions permit removal of excisable goods from a factory to a warehouse or between warehouses without payment of duty when notified by the Government, subject to conditions, safeguards, limitations and prescribed procedures. The consignee is responsible for payment of duty on goods removed to or between warehouses; if goods dispatched for warehousing are not received, the consignor is liable. For inputs off-site storage, Rule 8 of the CENVAT Credit Rules applies; finished goods require prior permission from the Commissioner of Central Excise.