CHAPTER 10
WAREHOUSING
Part-I
General1. Introduction
1.1 Facility of warehousing of excisable goods without payment of duty has beenprovided in respect of the specified commodities by Notification No.
47/2001-CE(NT), dated 26 th June, 2001. The Central Board of Excise and Customs has also specifieddetailed procedure including the conditions, limitations and safeguards for removal ofexcisable goods sub-rule (2) of Rule 20 of the
Central Excise (No.2) Rules, 2001 (hereinafterreferred to as the said Rules)
1.2 Any goods warehoused may be left in the warehouse in which they aredeposited, or in any warehouse to which such goods have been removed, till the expiryof three years from the date on which such goods were first warehoused.
2. Place of registration of warehouse
2.1 Commissioner of Central Excise will specify the places under his jurisdiction wherewarehouse can be registered, by issuing Trade Notice. Any person desiring to havewarehouse will get himself registered under the provisions of Rule 9 of the said Rules.
3. Procedure for warehousing of excisable goods removed from a factory or awarehouse
3.1 The consignor (i.e. the manufacturer or the registered person of the warehouse)shall prepare an application for removal of goods from a factory or a warehouse toanother warehouse in quadruplicate in the specified Form
(Annexure-25).
3.2 The consignor shall also prepare an invoice in the manner specified in Rule 11 ofthe said Rules in respect of the goods proposed to be removed from his factory orwarehouse.
3.3 The consignor shall send the original, duplicate and triplicate application andduplicate invoice along with the goods to the warehouse of destination.
3.4 The consignor shall send quadruplicate copy of the application to theSuperintendent–in-charge of his factory or warehouse within twenty-four hours of removalof the consignment.
3.5 On arrival of the goods at the warehouse of destination, the consignee (i.e. theregistered person of the warehouse who receives the excisable goods from the factoryor a warehouse) shall, within twenty-four hours of the arrival of goods, verify the samewith all the three copies of the application. The consignee shall send the originalapplication to the Superintendent-in-charge of his warehouse, duplicate to theconsignor and retain the triplicate for his record.
3.6 The Superintendent-in-charge of the consignee shall countersign the applicationreceived by him and send it to the Superintendent-in-charge of the consignor.
3.7 The consignor shall retain the duplicate application duly endorsed by theconsignee for his record.
4. Failure to receive a warehousing certificate
4.1 The consignor should receive the duplicate copy of the warehousing certificate,duly endorsed by the consignee, within ninety days of the removal of the goods. If thewarehousing certificate is not received within ninety days of the removal or suchextended period as the Commissioner may allow, the consignor shall pay appropriateduty leviable on such goods.
4.2 If the Superintendent-in-charge of the consignor of the excisable goods does notreceive the original warehousing certificate, duly endorsed by the consignee andcountersigned by the Superintendent-in-charge of the consignee, within ninety days ofthe removal of the goods, weekly reminders must be issued by him to theSuperintendent-in-charge of the consignee. If despite such reminders the originalwarehousing certificate is not received within a further period of sixty days of the expiryof the ninety days period, the Superintendent-in-charge of the consignor shall inform hisAssistant Commissioner/Deputy Commissioner who shall either secure a satisfactory proofof the goods having been duly received by the consignee or ensure that the duty ofexcise due on the goods not received at destination is recovered from the consignor.
5. Accountal of goods in a warehouse
5.1 The registered person of the warehouse shall maintain a register showing allentries in to and removals of the goods from his warehouse and shall indicate the value,quantity of the goods removed, their marks and numbers as well as the rate of duty andamount of duty involved. The processes carried out on the warehoused goods, if any,shall also be recorded.
5.2 The first and last pages of the register should be pre-authenticated by the ownerof the warehouse or his authorised agent.
6. Responsibility of the registered person
6.1 The registered person of the warehouse shall be responsible for due reception of thegoods in to the warehouse and delivery therefrom including their safety during theperiod they are lodged in the warehouse.
6.2 The registered person shall be responsible for the payment of penalty or interestleviable in respect of the goods which are warehoused as per the provisions of theCentral Excise Act, 1944 and the rules made thereunder.
7. Revoked or suspended registration of a warehouse
7.1 If the registration of a warehouse is revoked or suspended, the excisable goodslodged therein shall either be cleared for home consumption on payment of duty or shallbe removed to another warehouse without payment of duty.
8. Warehouse to store goods belonging to the registered person
8.1 A warehouse shall be used solely for storing excisable goods belonging to theregistered person of the warehouse alone. He shall not admit or retain in the warehouseany excisable goods on which duty has been paid;
8.2 The Commissioner of Central Excise having jurisdiction over the warehouse maypermit storage of excisable goods along with the excisable goods belonging to anothermanufacturer;
8.3 The Commissioner of Central Excise having jurisdiction over the warehouse maypermit the registered person of the warehouse to store duty paid excisable goods or dutypaid imported goods along with non-duty paid excisable goods in the warehouse.
9. Registered person right to deal with the warehoused goods
9.1 The owner of the warehouse may sort, separate, pack or re-pack the goods andmake such alterations therein as may be necessary for the preservation, sale or disposalthereof.
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