Excise duty on gold coins manufactured-Non branded

This query is : Resolved

Rajeev H S (Querist)
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14 December 2019 Sir,
kindly advice whether one is liable to pay excise duty if they are manufacturing gold coins which are non branded.The department Says that we are liable with the below contention
The assessee is manufacturing Articles of jewellery CETH 71131910 (gold), 71131930(gold jewellery studded with precious stones) and gold coins falling under 71141910. The assessee is paying Central Excise duty @1% on the value of Articles of jewellery (gold) in terms of Sl.No.199(1) of Notification No.12/2012 CE dated 17.3.2012, as amended. The assessee hasneither paid duty on the value of gold coins manufactured by them nor declared the value of these goods in the ER-8 returns filed with the department.
The effective rate of C.Ex duty on gold coins (other than those bearing a brand name) falling under CETH 7114 is ‘NIL’ as per sl no.192(I) of the Notification No.12/2012 CE dated 17.3.2012. Condition No. 52A was inserted in Notification No.12/2012 CE dated 17/3/2012 vide Notification No.12/2015 CE dated 1st March, 2015 read with corrigendum dated 4th March, 2015. This condition reads as follows “If no credit under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 has been taken in respect of inputs or input service or capital goods used in the manufacture of these goods.” Notification No. 34/2016 CE dated 8th September, 2016 substituted the entries against sl.no.192 of Notification No.12/2012 CE dated 17/3/2012. Thus, with effect from 8th September, 2016, a manufacturer of goods listed at sl no 192(I) & 192(II) of Notification No. 12/2012 CE shall be eligible to clear such goods at NIL rate of duty, subject to the fulfillment of condition no. 52A.

If not kindly share me the notification number ratifying it.Please help

Rajesh Kumar

Rajesh Kumar (Expert)
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02 January 2020 Central Excise Duty is exempted on unbranded gold coin. You have correctly not paid duty. However, as objection has been raised by the department, you need to contest you.