Warehousing of Goods - Central Excise Practice Manual (OLD) - Central Excise

WAREHOUSING OF GOODS All excisable goods are removed from factory only on payment of duty. However, government had made the facility of removal of certain notified goods without payment of duty from the factory of production to a warehouse or from one warehouse to another warehouse [Rule 20 of CE Rules 2001]. Such warehouse can be public or private. According to Rule 20: - 1. Board has prescribed the conditions, limitations and safeguards from time to time by issue of notification. 2. Responsibility of payment of duty - It is the consignee's (i.e. the person to whom goods are sent) responsibility for the goods removed from the factory to warehouse under warehousing. It is the consignor's responsibility if the goods despatched under warehousing are not received in the warehouse. 3. Goods can be stored for maximum period of 3 years. Benzene, Toluene, Xylene, Propylene, Tertiary amly methylene ether. 4. Goods intended for direct supply as stores to a foreign-going vessel or aircraft or to a meal uplift station outside India. These goods are - Cigarettes Aerated waters Prepared and preserved foods Aluminum foil covers Stainless steel cutlery Butter Cheese Procedure for warehousing is as follows: In case registration is revoked or suspended goods stored there shall either - 1. Registration - person should get the warehouse registered with the Commissioner of central excise having jurisdiction over the warehouse as per the provision of Rule 9 of CE. A register shall be maintained at warehouse pre-authenticated by the owner or his agent on its first and last page, showing entry and removal of goods with there quantity, value, rate and amount of duty, their marks etc. Be cleared for home consumption on payment of duty, or The consignee shall verify the goods with the 3 copies of application. Be transferred to another warehouse without payment of duty. The consignee shall send the 3 copies of application in the following ways - 2. The consignor shall prepare application in quadruplicate and an invoice for removal of goods from factory or warehouse to another warehouse. Excisable goods belonging to another manufacturer along with his own goods. Duty paid excisable goods or duty paid imported goods along with non-duty paid excisable goods. Duty paid goods belonging to another manufacturer along with non-duty paid goods. 6. In the warehouse, the owner may sort, separate, pack or re-pack the goods, make alterations necessary for preservations, sale or dispose of the goods. 3. consignor shall distribute the copies of application and invoice in the following manner: Original, duplicate triplicate copy of application, duplicate copy of invoice along with goods to the destined warehouse. Quadruplicate copy of application to superintendent-in-charge of his factory or warehouse within 24 hrs of removal of consignment. 4. On arrival of goods at the warehouse - - Original to the Superintendent in charge of his (consignee's) warehouse which shall be countersigned by him and send by him to the superintendent in charge of the consignor (he shall receive it within 90 days of removal of goods, otherwise reminder will be issued and if despite such reminders certificate is not received further in 60 days intimation will be given to the AC/DC). - Duplicate to the consignor (he shall receive it within 90 days of the removal of goods, otherwise consignor shall pat appropriate duty) which will be retained by him for his record. - Triplicate to be retained for his record. 5. Warehouse shall be used solely for storing excisable goods belonging to the registered person of the warehouse alone. However, with the permission of the Commissioner of CE having jurisdiction over the warehouse storage of following goods is also allowed: - The products covered under warehousing i.e. for removal of goods from factory or warehouse to another warehouse are [Notification No. 17/2004 - CE (NT)] - 1. Goods falling under Chapter 29 of 1 st schedule of CETA, 1985, namely -