Qualified Chartered Accountant
565 Points
Joined October 2007
As said by Mr. Harinder Singh Negi, i agree with him to some extent but would like to throw some more light on this.
Warehouse: Warehouse can be of two types 1) registered under excise 2) Not registered under excise (May be refered as Depot)
Under Excise, if warehouse is registered under excise, then manufacturer can deposit his goods in the registered warehouse without payment of duty provided:
- Either goods are specified under Rule 20 of CER'2002
- Or, Goods are of seasonal nature & there is space shortage in factory of production.
If goods lie under second condition, goods can be shifted to registered warehouse only after obtaining permission of Central Excise Officer who can impose some conditions on such transfer.
On transfer of goods from factory to registered warehouse, the liability to pay excise duty comes on warehouse keeper.
DEPOSIT OF GOODS IN REGISTERED WAREHOUSE WITHOUT PAYMENT OF DUTY IS ALLOWED FOR THE REASON THAT DEPARTMENT HAS CONTROL OVER REGISTERED WAREHOUSE.
Second case is of unregistered warehouse: It is just like a depot where goods can be deposited only on payment of Excise Duty. Manufacturer will have to pay excise duty on removal of goods from factory, be it for sale or transfer to its own warehouse/depot.
I think, now you must have got the zist of difference between warehouse & depot.
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