Storage of excisable fg by cutting excise invoice

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prashant (Querist)
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29 October 2011 There is an adequate space to our customer & due to month end pressure we want to keep the goods outside the factory premises by cutting of excise invoice.
What will be the procedure to follow?

U S Sharma

U S Sharma (Expert)
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30 October 2011 wrong practice,

you have to issue invoice and deliver the goods only when the customer needs the same.

in case you need to store the finish goods outside the factory after clearance, you need to register the place as depot. and issue dealers invoice from that place to customer.

prashant

prashant (Querist)
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30 October 2011 Can we treated this as transhipment point.

U S Sharma

U S Sharma (Expert)
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30 October 2011 in any other case the buyer would not be in position to avail input credit on invoice issued by factory, coz the goods were not delivered to him directly.

S.P.Mahanta

S.P.Mahanta (Expert)
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31 October 2011 Letter of intimation to be given to jurisdictional AC/DC stating reasons eg. non availability of storage space, nature of goods, duration of such storage etc.Such storage shall be subject to such conditions, jurisdictional AC/DC may impose. Excise invoice can be raised only when goods removed from place of removal, in this case outside factory premise. However, intimation to be to be issued to excise authorities for each removal.Raising of excise invoice at the time of removal from factory to outside factory premise & thereafter selling the goods may create Cenvat credit problems to buyer as well blockage of funds of manufacturer.
Choice depends on facts & circumstances & convenience.

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