TRADE NOTICE No.02/CE/SH/2016
Dated, Shillong the 1st February, 2016
Subject : Permission for storage of duty paid goods in the factory premises for trading purposes – reg’.
Clarification has been sought as to whether a manufacturer can bring duty paid goods in the registered manufacturing premises for the purpose of trading / supply with the finished product as per requirement of the customer either for home consumption or for export as there are no corresponding provisions in the Central Excise Rules, 2002 Rules 51-A & 173-H of the erstwhile Central Excise Rules, 1944.
In the absence of any prohibitory provisions in the Central Excise Rules 2002 and also the procedure laid down in the supplementary instructions, a manufacturer may bring duty paid goods in the registered manufacturing premises for trading purposes and no permission in this regard is warranted from the Central Excise Department. However, a factory cannot be allowed to receive goods from outside, which are identical to those manufactured by them without proper permission from the Commissioner. In this regard, for bringing the duty paid goods for trading purposes which are identical to those manufactured in the factory, permission should be obtained by following the procedure as mentioned below:
The manufacturer desirous of seeking permission to bring dutiable goods of an identical nature shall submit an application in triplicate in the enclosed Proforma duly filled in and complete in all respects to the Commissioner, Central Excise through the jurisdictional Range Officer and Divisional Officer with a copy to the Commissioner.
The manufacturer shall, also submit a ground plan of the premises duly earmarked where the duty paid goods are likely to be stored.
The jurisdictional Range Officer, on receipt of the application shall verify the information contained in Annexure '1' of the application. The Range Officer should verify the premises and record his finding on all the copies of the applications and send the same to the Divisional Officer, retaining one copy of the application with him, within 2 days of receipt of the application from the assessee.
The Divsional Officer shall record his findings in both the copies of the applications and submit the original copy of application alongwith the verified ground plan to the Commissioner within 4 days of receipt of the application from the assessee retaining one copy of the application with him. No manufacturer should commence trading activity of identical goods without prior approval from the Commissioner, Central Excise. The assessee should maintain a separate account of invoices in the factory for trade purposes in the Proforma indicated in Annexure - II.
C.No.IV(16)05/Tech/TN/SH/2014/15714-84 Dated: 01-FEB-2016
Copy forwarded for information and necessary action to:-