TMI BlogExcise Duty payment and recreditX X X X Extracts X X X X X X X X Extracts X X X X ..... Due to shortage of space the assessee wants to move the goods outside the factory by debiting the duty. Can the Assessee raise invoice subsequently to the customers refereing to the duty debited initially at the time of moving the goods outside the factory. Alternatively can the assessee take recredit of the goods if the goods are moved in and then invoiced to the customers and pay the tax . Please let me know the provions underwhich we can carry out the above transaction. Obtaining the permission from the Department for such a transaction is lenghty affair and hence the alternative proposals are made - Reply By Achyut Kale - The Reply = Dear Mr. Jagganathan, From the first para of your query it seems that, you are facing p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roblem in storage of inputs because of in-adequet space. If this the issue, then you need not have to reverse the cenvat credit for removal of input only for the purpose of storage of the same out ouf factory premises. You may obtain necessary permission from the jurisdictional Asst./Dy. Commissioner for storage of duty paid goods (on which cenvat is availed) under Rule 8 of the Cenvat Credit Rule 2004. After grant of such permission you may store the inputs out side factory premises by following the the conditions mentioned in the permission letter. In this transaction there is no need to reverse the credit while removal of inputs for storage. If you are selling the inputs as such home consumption then you have to prepare invoice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule 11 for removal of the inputs on payment of duty. In case of any further dobut may contact on my e-mail i.d. achyutdkale@gmail.com or contact on my cell No. 9890225544 Regards Achyut Kale - Reply By NEERAJ KUMAR, RANCHI - The Reply = Dear Mr Kumaravel The issue raised by you is covered under Rule 8 of the Cenvat Credit Rules 2004 for which permission is required by thee jurisdictional AC/DC. I am unable to understand why this is a lengthy affair for you. Goods cant be removed from factory just by debiting duty , it can be removed only on the basis of an invoice under Rule 11 of thhe Central Excise Rules. Neeraj - Reply By Mangesh Lokre - The Reply = Dear Mr JAGANATHAN The querry is not specific. Do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... you wish to say 1. That you wish to store the Inputs outside factory premises OR Answer to the Query is given by our Learned Brother. You have to follow the Rule 8 of Cenvat Credit Rules 2004 2. You wish to Store the Finished Goods outside the factory premises For this you have to apply for the permission for storage of Finished Goods outside the factory premises by quoting the Rule 4 (4) of Central Excise Rules 2002 to the Jurisdictional Commissioner. After the written Permission from the Commissioner, you can store the Finished Goods without Payment of Duty after following the conditions specified thereon. The Procedure is not lengthy. You may obtained the permission within a week time, if the documents are clear. Thank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. - Reply By Dilip Darji - The Reply = Dear Sir. In case if you are referring to Foinished Goods:- Please refer Page no.6.200 of R K Jaimn's Central Excise Lawanual 2011-12 (May 2011) 53 rd Edition, you would find a Circular No.610/1/2002-CX dt.01/01/2002 (This is also available on CBEC website), wherein it is mentioned at Para No.3 that "the facility of storage of non-duty paid goods (manufacured goods) outside the factory premises, without payment of duty, may be made available to ensure no hardship is caused to the trade." Maximum, Dept. can ask for a simple indemnity Bond on a stamp Paper that you shall not remove the goods to anyone, except return to the main factory, from where the goodfs shall be remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved on payment of excise duty". In view of above clarifications, other possibilities are ruled-out. In case, if you are referring to In-puts:- Please refer to Page No.6.238 and 6.239 of R K Jain's Central Excise Lawanual 2011-12 (May 2011) 53 rd Edition, on which a Trade Notice No.93/2004 of Ahmedabad-II Commissionarate, has been reproduced, which gives the detailed procedure to be followed by the manufacturer. - Reply By RAM SHARMA - The Reply = Can we store finished goods and input material simentaniously. Secondly can we store finished goods out side the factory by taken Warehouse Dealer Registration. What is the best option. Thanks - Reply By Dilip Darji - The Reply = Mr.Sharma. You cannot store in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put and finished goods simentaniously, as Finished are those on which excise duty is payable on its removal from the factory(which is known as non-dauty paid goods), whereas inputs are duty paid inputs. You cannot store non-duty paid goods and duty paid goods. It will be very difficult to prove if both are stored at the same place simentaniously, You can very well obtain warehouse registration outside factory and store duty paid finished goods. If you have sufficient storage place/area in your factory, you can demarkate certain area for FG and Inputs (simply by drawing a colored lines of the floor) and continue youir activity, without spending any extra money. Otherwise, you may go for warehouse registration ans shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have to incuur additional expenses on (1) godown rent (2) pay duty on FG while transferring to Warehouse (3) obtaining Warehouse Registration etc. - Reply By Ketan Jog - The Reply = Hello, I have a follow up query. We have obtained a permission for storage of finished goods outside factory under 4(4). We have had it for 3-4 years now, being renewed annually. The department now has sort of changed its stand, saying we cant have it for years , it can only be given for a temporary period. The rules do not restrict period , does anyone know of any other reference where period is mentioned in any departmental circular or notification or ..... - Excise Duty payment and recredit - Query Started By: - JAGANATHAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KUMARAVEL Dated:- 31-7-2011 Central Excise - Got 7 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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