Removal of goods for storage in a warehouse without payment of duty [Sub- rule (4)] :

In certain industries like sugar, the production is seasonal, but the off-take from the factory is throughout the year. In such cases, storage of huge quantities within the factory is burdensome. Further, since a large quantity of off-take is controlled by the Government, the management may not be in a position to remove the goods on payment of duty.

Consequently, sub-rule (4) provides that Commissioner may in exceptional circumstances having regard to

•  the storage of goods and
•  storage space at the premises

permit a manufacturer to store his goods in any other place outside his premises without payment of duty. This will be subject to such conditions as may be prescribed.