Furniture manufactured at customer's site.

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CA Vijay Kumar Walande (Querist)
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24 August 2011 Dear Members,

As per the decided case law of CCEx. V. Mehta & co., Furniture manufactured at Customer's Site is movable and is liable to excise duty.

My Query is, When is that the rate of excise is applied. i.e., Rule 4 of Central Excise Rules says the duty is payable at the time of removal of goods from the fctory.

Now, What is factory in case of furniture manufactured at the customer's site. Why because it is kept there itself after manufacturing and is no where removed later.

Please reply with relevant provisions and case laws if any.

Waiting for jet response.
Vijay

PAWAN KUMAR

PAWAN KUMAR (Expert)
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24 August 2011 As per expl. to rule 5 of central excise rules 2002, The excisable goods which manufacture at customer's site shall be liable to duty after manufacturing subject to its billing for subsequent use within the premises.

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CA Vijay Kumar Walande

CA Vijay Kumar Walande (Querist)
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30 June 2012 Thank you for replying

So, does it mean - it is liable to duty on raising invoice.

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