GOLD STUDDED ORNAMENTS.

This query is : Resolved

anckoora (Querist)
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12 February 2011 DEAR SIR,

(1)IS THERE EXCISE ON MFG OF GOLD ORNAMENTS / JEWELLERY STUDDED WITH DIAMONDS
STONES ETC ? IF YES OR NO - UNDER WHAT CHAPTER / HEADING / SECTION / NOTIFICATION ?

(2) IF WE MANUFACTURE BRANDED JEWELLERY ( PURELY ON JOBWORK BASIS )FOR OUR PRINCIPAL, THEN IS EXCISE DUTY APPLICABLE ?
IF YES / OR NO - UNDER WHAT CHAPTER HEADING/ SECTION / NOTIFIATION ?
(3) IF WE MANUFACTURE OUR OWN BRAND'S JEWELLERY, THEN IS THERE EXCISE DUTY APPLICABLE ON OWN BRANDED JEWELEERY MANUFACTURING ?
PL SUPPORT YOUR ANSWERS WITH CHAPTERHEADING / SECTION / NOTIFICATION.
THANKS
ANCKOORA.

Rajesh Kumar

Rajesh Kumar (Expert)
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14 February 2011 1. Presently there is no duty on Branded Jewelery. It was withdrawn in 2009-10 budget. Earlier it was levied @2%. The product “Articles of Jewellery”, under the Central Excise Tariff Heading 7113, is exempted from the Central Excise duty, vide Notification no. 6/2002-CE dated 1-3-2002 as amended till date, item serial no. 171.
2. No Excise duty is payable as manufacture of branded jewelery is exempt. However, Job work falls under Business Auxiliary Service, and Service Tax is payable on job charges.
3. As the jewelery is itself exempted, no payment of duty is required.