Imposition of Central Excise duty on jewellery -Constitution of sub- committee of the High Level Committee - Central Excise - PUBLIC NOTICE - 02/2016

OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE SERVICE TAX 7th FLOOR, TRADE CENTRE, BUNTS HOSTEL ROAD, MANGALURU-575 003 C. No. IV/16/26/2015 Tech/4941 Date 25.04.2016 PUBLIC NOTICE - 02/2016 Subject: Imposition of Central Excise duty on jewellery -Constitution of sub- committee of the High Level Committee - reg. Trade, Industry and Public are hereby informed that in the Budget 2016-17, Central Excise duty at the rate of 1% (without input tax credit) and 12.5% (with input tax credit) has been imposed on all articles of jewellery (except for silver jewellery, other than those studded with diamond, ruby, emerald or sapphire). 2 In this regard, a Sub-Committee of the High Level Committee has been formed to interact with Trade Industry on Tax Laws.. 3 Till the recommendations of the-Sub-Committee are finalized, the following shall be adhered to: a) all payments of central excise duty will be based on first sale invoice value; b) The central excise authorities will not challenge the valuation given in the invoice provided the caratage/ purity and weight of the gold/silver with precious stones: and carats of diamond/precious stones are mentioned on the invoice; c) The central excise officers will not visit the manufacturing units/ shops/ place of business/ residence of the jewelers; d) No arrest or criminal prosecution of any jeweler will be done; e) No search or seizure of stocks by any central excise official will be effected; f) Exporters will be allowed to export on self-declaration and submission of LUT to customs without the need to get LUT ratified by central excise. Prevailing system will continue. 4. The time limit for central excise registration of an establishment by a jeweler is being extended up to 01.07.2016. Though the liability for Payment of central excise duty will be with effect from 1st March, 2016, the assessee jewelers may make the payment of excise duty for the months of March 2016, April 2016 and May 2016 along with the payment of excise- duty for the month of June 2016. For further details please refer Circular nos, 1021/9/2016-CX dated 21.03.2016, 1025/13/2016-CX dated 22.04.2016 and 1026/14/201 -CX dated 23.04.2016 on the website www.cbec.gov.in (Dr. M. SUBRMANYAM) COMMISSIONER