CIR NO.709/25/2003-CX, DT. 23/04/2003
- Document type
- Circular
- Reference no.
- J
- Dated
Central Excise- Storage of goods outside factory premises-Waiver of Merchant overtime charges
Central Excise- Storage of goods outside factory premises-Waiver of Merchant overtime charges
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 Boards 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