Page 180 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 11: Warehousing and Duty Drawback

processed or manufactured in a refinery, declared under sub-rule (2) of rule 140, may blend or Notes
treat or make such alterations or conduct such further manufacturing processes in the aforesaid
goods in such manner and subject to such conditions as the Central Government may, by
notification in the Official Gazette, specify.
Goods not to be taken out of warehouse except as provided by these rules.

No goods shall be removed from any warehouse except as on payment of duty or, where so
permitted by the Central Government by notification in this behalf, for removal to another
warehouse or for export, from India and on presentation of the written application prescribed in
rule 158 or in rule 185, as the case may be.
Owner of goods may take samples. Provided that, subject to such conditions and limitations as
the Commissioner may impose the owner may remove samples sufficient to enable him to
conduct his business. Such samples shall be duly ticketed and certified by an officer and shall be
entered in the warehouse register and included in the total quantity of such goods liable to duty
when an account of the stock in the warehouse is taken as prescribed in rule 223A and duty shall
be levied thereon when such account is taken and not at the time of removal of the samples from
the warehouse.

Period for which goods may remain warehoused

Any goods warehoused may be left in the warehouse in which they are deposited, or in any
warehouse to which such goods may, in manner hereinafter provided, be removed, till the
expiry of three years, from the date on which such goods were first warehoused. The owner of
any such goods remaining in a warehouse on the expiry of such period shall clear the same
either for home consumption after payment of duty in the manner provided in rule 157, or for
exportation in bond in the manner laid down in rule 13 or rule 14:
Provided that in the case of tobacco this rule shall have effect as if for the words “three years” the
words “two years” were substituted:
Provided further that if the goods (other than tobacco) have not deteriorated and the
Commissioner on sufficient cause being shown is satisfied about the condition of the goods and
the genuineness of the reasons advanced for claiming extension, he may—
(a) permit such goods to remain in any warehouse for a further period not exceeding one year,
in extension of the period of three years referred to in this rule;
(b) permit such goods to remain warehoused in such warehouse for a further period not exceeding
one year in addition to the extension granted under clause (a) of this proviso:

Provided also that in the case of tobacco if the goods have not deteriorated and on sufficient
cause being shown, the Commissioner may, if he is satisfied about the condition of the goods
and the genuineness of the reasons advanced for claiming extension,—
(a) permit such goods to remain in any warehouse for a further period not exceeding one year,
beyond the period of two years referred to in this rule;

(b) in the case of flue-cured tobacco, permit such goods to remain warehoused in such warehouse
for such further period as may be specified by him in addition to the extension granted under
clause (a) of this proviso:
Provided further that if the said period of three years or two years, as the case may be, or such
extended period as may have been allowed under the aforesaid provisos to this rule expires at
any time during which the Central Government have imposed quantitative restrictions on the
clearance of excisable goods from a warehouse for home consumption, the restrictions on removal

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