Ware House Provision

[RAM SHARMA]

Dear Experts,

We are registered manufacturer under central excise rule. Due to shortage of space we want to make a warehouse near the manufacturing premises for Raw Material and Finished Goods. We want to store all type of material like input and finished goods without payment of duty . Can we do it? What is the procedure and best option in this regards. Pl suggest.

Thanks

[YAGAY andSUN]

Kindly seek permission from the  jurisdictional Commissioner of Central Excise in this regard.

[Guest]

Dear Ram,

You can seek for permission to store Inputs outside mfg premises from a Juridictional authority and they may allow you to do so by with guidance to some procedure to follow.

It is my suggestion that - if you want to store ALL material at Place other than your mfg unit, you can have registration for storage place - a) Purchase all inputs in new premises name (avail cenvat credit ) and send material to mfg unit under jobwork challan  get back finished goods b) Sales from new place.

 

Thanks

AI Summary

Permission to store inputs off site enables registered storage, Cenvat credit and movement under jobwork challans for compliant inventory management. Manufacturer must obtain express permission from the jurisdictional excise authority to store inputs and finished goods off site; permission will include procedural directions. One compliant approach is to register the storage place, purchase inputs in the storage location's name to avail Cenvat credit, and move materials between the storage place and the factory under appropriate jobwork or movement challans, with finished goods returned or sold from the registered storage location in accordance with the permission and excise procedures.