Store input material and finished goods

Dear Experts,

 

Due shortage of warehouse in manufacturing premises we want to store input material and finised goods to another manufacturing unit. Can we do it ? Pl tell procedure.

Thanks&Regards

Replies (3)

You can do that. Pl. go through the Central Excise Rules,2002 and Cenvat Credit Rules,2004, wherein specific proviosn exists for  the same.

 

Raksh*t         Mob:09810525780

advrcverma @ gmail.com

Inputs should be stored within the factory. However, if manufacturer is unable to store the inputs inside the factory for want of space, hazardous nature of goods etc., he can store the inputs outside the premises. The storage point of will be treated as extension of the factory. Permission from AC/DC is necessary under rule 8 of cenvat credit rules 2004. You can store the final products outside the factory with payment of excise duty. 

 

Can we consider following rule for removal of finished goods without payment of duty.

RULE 20  Warehousing provisions. — (1) The Central Government may by notification, extend the facility of removal of any excisable goods from the factory of production to a warehouse, or from one warehouse to another warehouse without payment of duty.


(2) The facility under sub-rule (1) shall be available subject to such conditions, including penalty and interest, limitations, including limitation with respect to the period for which the goods may remain in the warehouse, and safeguards and procedure, including in the matters relating to dispatch, movement, receipt, accountal and disposal of such goods, as may be specified by the Board.


(3) The responsibility for payment of duty on the goods that are removed from the factory of production to a warehouse or from one warehouse to another warehouse shall be upon the consignee.


(4) If the goods dispatched for warehousing or re-warehousing are not received in the warehouse, the responsibility for payment of duty shall be upon the consignor.

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