RULE 173H. Retention in, or bringing into, a factory or warehouse, of duty-paid goods

-(1) Except as hereinafter provided, no excisable goods or parts thereof on which duty has been paid shall be brought into, or retained in, a factory or a warehouse.

(2) An assessee ma, subject to such conditions as may be specified the Commissioner, retain in, or bring into, his factory or warehouse, excisable goods or parts thereof, accompanied by duty paying documents, if such goods or parts thereof, -

(a) are required for use in the manufacture of other goods in the factory; or

(b) are required in the factory for construction, repairs or for use as fittings or equipment or for any other purpose for which such goods are normally consumed; or

(c) need to be re-made, refined, reconditioned, repaired or subjected to any similar process in the factory; or

(d) cannot be transported due to circumstances beyond the assessees control, such as, the suspension of booking on railways, non-availability of railway wagons or the breakdown of carriers; or

(e) are required for test or for study of designs or methods of construction : Provided that where such goods or parts thereof are required to be brought into the factory or warehouse of an assessee for any of the purposes specified in clause (c), such goods or parts thereof shall be brought into such factory or warehouse within a period of one year from the date of their initial removal from the factory or warehouse or within the period of warranty or guarantee provided in respect of such goods by the manufacturer thereof, whichever is more :

Provided further that the Commissioner may, on a representation being made to him in this regard, if he is of opinion that having regard to the circumstances of the case, it is necessary so to do, by order extend the period specified in the first proviso to such period, as he may consider necessary:

Provided also that in the case of goods or parts thereof which are not ac- companied by duty paying documents, if the Commissioner is satisfied that the identity of the goods can be established by other collateral evidence, he may by order and subject to such conditions as he may impose, relax the requirement of the production of duty paying documents.

(3) Chief Commissioner may by a general or special order, and subject to such conditions and limitations as may be specified in such order, permit any other duty paid goods or parts thereof not specified in sub-rule (2), to enter, or to be retained in, a factory or a warehouse.

(4) The goods or parts thereof retained in, or brought into, a factory or a warehouse in accordance with the provisions of sub-rule (2) or sub-rule (3) may, if not subjected to any process amounting to manufacture, be removed from the factory or warehouse without payment of duty subject to such conditions as may be specified by the Commissioner or Chief Commissioner as the case may be.