Stock transfer

Where goods are produced at a factory and are transferred to some other place from where they have to be sold, the other place would be termed as Depot, which is the place of removal under Excise provisions. In your case, Salem warehouse is a depot. Goods will have to be removed from factory at Tirupur to Depot at Salem under invoice and on payment of duty.

Depot will work as an excsie dealer and will only transfer the duty paid by the manufacturer through dealers invoice. 

Dear Mr.Prabhat Gupta,

In the above case how can you treat the warehouse as 'Dealer'. I agree that duty has to be charged while removing goods from Thirupur to Salem. But when goods are sold from Salem Warehoue how to deal. Is it correct to raise one more excise sales invoice. If it is treated as 'Dealer' what excise registration number should he quote on his Excise sales invoice?

There is a Rule 20 especially for Warehousing procedure. Will it aplicable.

@ Ranganathan as mentioned by yourself you are a excise registered dealer, and can receive / deliver the excise paid goods under dealer registration. dealer invoice / register 23D / excise dealer return has to be maintained by you in this regard. a manufacturing point, a manufacturer can apply for warehousing under rule 20 of CE rules 2002, through his juridicational deputy commissioner, but the permission would be granted by board or the person authorized by board, on imposition of certain norms and limitations to safeguard the revenue, usually such permission is sought/ permitted on annexe building/weahrehouse of manufacturing premises, under same range/division. dealer registration is a normal process to store the duty paid goods and clear the same on dealer invoice to consignee at non manufacturing warehouses / depots.

Mr. Ranganathan,

I think Mr. Sharma has made my point clear.

As far as applicability of Rule 20 is concerned, it is applicable to goods notified by Central Government vide some notification. I would like to bring to your attention Notification No.17/2004-CE(NT) [previously Notification No.47/2001-CE] issued by Central Government in this regard. If the item manufactured by you is covered by the notification referred above or some other Notification issued in this regard, you can apply for the benefit of Rule 20.

But for cases otherwise, the procedure described above is normally in practice.