Goods produced in factory and stored outside in warehouse

Goods produced in factory and stored outside in warehouse

In this case, Goods are allowed to be removed from factory and allowed to be stored in warehouse.

Excise duty is applicable on the date of removal of goods from warehouse and the person liable to pay duty is the person who stores goods in warehouse.

Change in Tax Rate between Date of Manufacture and Date of Removal

In this case, tax rate as on  date of removal from factory is applicable

Goods were taxable at 0% later become taxable at 12.5%

In this case also, tax rate as on  date of removal from factory is applicable

Goods were taxable at 12.50% but were exempted due to a notification,

later exemption notification withdrawn and they became taxable

In this case also, tax rate as on date of removal from factory is applicable

Goods were Non Excisable (not mentioned in CETA) later became taxable on date of removal

In this case, no duty as goods were not excisable at the time of manufacture.