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2020 ] DEPARTMENTAL CLARIFICATIONS T65

referred to as the “CGST Act”). It would therefore be taxable in terms of section 9
of the CGST Act, 2017 or section 5 of the Integrated Goods and Services Tax Act,
2017 depending upon the supply being intra-state or inter-state. The resultant
product will thus be supplied from the warehouse to the domestic tariff area
under the cover of GST invoice on the payment of appropriate GST and
compensation cess, if any. As regards import duties payable on the imported
goods contained in so much of the resultant products are concerned, same shall
be paid at the time of supply of the resultant product from the warehouse for
which the licensee shall have to file an ex-bond Bill of Entry and such
transactions shall be duly reflected in the accounts prescribed under Annexure B.
As per MOOSWR, 2020, the applicant shall also inform the input-output norms
for raw materials and final products and shall also inform the revised input-
output norms in case of change therein.
8.1 The proper officer should ensure that the goods so cleared are result
of manufacturing or other operations. In case the licensee is unable to carry out
any manufacturing or other operations on warehoused goods, then the goods
may be cleared as such, either for home consumption after the payment of
applicable import duties along with the interest accrued upon such goods in
terms of Section 61 (2) of the Customs Act, 1962 or may be exported. In such case
the provisions of clause (b) of Section 61(1) shall not be applicable.
9. The waste generated during the course of manufacture or other
operations of the resultant product may be cleared for home consumption as per
clause (b) to sub-section (2) of section 65 of the Customs Act on payment of
applicable duties of customs and GST.
10. Where the resultant product is exported, and duty on the waste or
refuse is paid as per proviso to clause (a) to sub-section (2) of section 65, the same
shall be deposited manually through a Challan. The records maintained as per
Annexure-B would be sufficient for accountal of such goods.
11. As per Regulation 3(2)(e)(i) of the Special Warehouse Licensing
Regulations, 2016, the Principal Commissioner or Commissioner has to be
satisfied that the site or building of the proposed special warehouse is suitable
for secure storage of dutiable goods. Regulation 8 of MOOSWR 2020, requires the
licensee to provide such facilities, equipment and personnel as are sufficient to
control access to the warehouse, provide secure storage of the goods and ensure
compliance to the regulations. Considering the nature of goods to be warehoused
in a special warehouse, the Principal Commissioner or Commissioner has to
ensure that the structure is fully closed from all sides, gate(s) with access control
and personnel to safeguard the premises. It is also to be ensured that there is/are
CCTV cameras at the gate(s) and there is a provision of accessing the same by
customs officers. The Principal Commissioner/Commissioners should take into
consideration the facilities, equipment and personnel put in place for secure
storage of goods, while considering grant of license. Further, office space for
bond officer and sufficient space for customs officer for carrying out examination
at the time of arrival or removal of goods have to be provided.
12. As per Regulation 4(2)(i) of MOOWSR 2020, a licensee is required to
maintain accounts of receipt and removal of goods in digital form in such format
as may be specified and furnish the same to the bond officer on monthly basis
digitally. This information shall be communicated from the registered email
address of a licensee to the designation based official email id accessed by the

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