QUESTION

Our one EOU claint is having agreement with bonded warehouse service provider for storage for imported caustic in bulk in rented storage tank and thereafter cleared form tank farm to factory in same state in tanker. X-bond bill of entry filed in the name of factory and material cleared in small quantity form rated warehouse to factory of challan by the warehouse owner. agrrement specified that all customs related activities must be completed by that person. Pl. advice whether such ratended premises required to declare as additional place of business and other obligation for such transaction

ANSWER

Facts of the case: Imported goods are stored in rented premises of the bonded warehouse service provider. Thereafter the bill of entry is filled and the goods are released as per the custom laws.

Law Applicable:
As per the definition of Place of business given in sub-section (85) of section 2, place of business means;

(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called"

Interpretation: As per the definition, a place of business includes a warehouse where the taxable person stores his goods.
However as per the custom laws, imported goods do not come under the possession of the importer till the bill of entry is filled. Till the goods are kept in the bonded warehouse the same are under custody of the warehouse keeper. The same can not be said to be "goods under the control of importer" till he has filled the bill of entry and therefore the bonded warehouse is not covered under the definition of place of business.

Conclusion: Declaring a bonded warehouse as an additional place of business is not required.(Reply dt.27-03-2020)