Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)
Departmental Instructions
New Delhi, dated the 14th July, 2010.
To,
All Director Generals,
All Chief Commissioners of Central Excise (including LTU),
All Commissioners of Central Excise (including LTU).
Sir/ Madam,
Subject: Warehousing permission to Storage Tanks mounted on a vehicle-reg.
It has come to the notice of the Board that a field formation has granted “on
wheel bonding facility”, thereby permitting the assessee to receive, store and
dispatch bonded duty paid ATF in Mobile Refuelling Tanks. It has been stated
that the permission has been granted in terms of Para 6.3 of the Board’s
Circular No. 804/1/2005-CX dated 04.01.05. The purpose of the assessee seeking
such permission appears to avail the facility of non-duty paid supplies to
international flights. Reference has also been received from other field
formations to clarify the issue.
- The matter has been examined. Para 6.3 of the said circular empowers the
jurisdictional Commissioner to permit the registered person of the warehouse to
store duty paid goods along with non duty paid goods in the warehouse subject to
the conditions, procedure and manner of payment of duty as prescribed by the
Commissioner. The provisions of the circular nowhere allows for storage of goods
in mobile tanks. Further, it is stated that such “on wheel” facility has an
inherent danger of pilferage/ theft of non-duty paid goods and resultant revenue
loss. It has also been noted that in any case, the registered person of the
warehouse can avail the facility of clearance of goods under rebate for supplies
to international flights, which are non-dutiable.
- In view of above, it is clarified that any such facility granted by field
formations is improper and not in accordance with the Board’s circulars issued
in this regard. Necessary action may immediately be taken to withdraw such
facility, if any, granted by any field formation under your jurisdiction. It is
also requested to advise such assesses to avail the option of rebate under Rule
18 of Central Excise Rules for supply of duty-free fuel to foreign bound
aircraft.
- Field formations may be suitably informed.
- Receipt of these instructions may kindly be acknowledged.
- Hindi version will follow.
Yours faithfully,
(Amish Kumar Gupta)
OSD (CX-8)
F.No.267/27/3/2001-CX8 (Pt.I)