CIR NO.709/25/2003-CX, DT. 23/04/2003

Central Excise- Storage of goods outside factory premises-Waiver of Merchant overtime charges

I am directed to refer to Board’s Circular No. 610/1/2002-CX dated 1.1.2002 wherein the facility of storage of non-duty paid goods outside the factory premises which was available under erstwhile rule 47(5) of Central Excise Rules, 1944 has also been granted under Central Excise (No.2) Rules, 2001 subject to adequate revenue safeguards.

2. It has been observed by the Board that even though the aforesaid circular does not envisage any physical supervision of such storage premises /godown by the Central Excise, the field formations are still collecting merchant overtime charges/ charges on cost recovery basis as per earlier concept of physical supervision of godowns/storage places in terms of Board’s Circular No. 261/33A/86-CX.8 dated 14.4.1986.

3. The matter has been examined. It is the view of the Board that in current era of liberalisation and simplification of law and procedures the emphasis is on self-assessment by the assesee. Therefore, the recovery of merchant overtime charges in such cases are no longer warranted. The Jurisdictional Commissioner shall, however, impose any other condition which he deems fit for the safeguard of revenue before granting permission for storage of non-duty paid excisable goods outside factory premises of the assessee.

4. The Circular No. 610/1/2002-CX dated 1.1.2002 and earlier instructions on this subject stand modified to the above extent.

5. Trade and field formation may be informed suitably.

F.No.261/12/2/2003-CX8

Yours faithfully

(VIJAY MOHAN JAIN)
UNDER SECRETARY TO THE GOVT. OF INDIA

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