Whether Gold Jewellery manufactured on power operated machines by gold dealers by employing labour was chargeable to excise duty under CETA, 1985 - Clarification regarding - Central Excise - 12/90-CX.4

Whether Gold Jewellery manufactured on power operated machines by gold dealers by employing labour was chargeable to excise duty under CETA, 1985 - Clarification regarding Circular No. 12/90-CX.4 Dated 8-6-1990 [From F.No. 135/5/89-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Whether Gold Jewellery manufactured on power operated machines by gold dealers by employing labour was chargeable to excise duty under CETA, 1985 - Clarification regarding. Reference is invited to Board's F.No. 135/5/89-CX.4, dated 27th November 1989 on the levy of excise duty on gold jewellery falling under Heading 7101, when made on power operated machines by means other than traditional goldsmithy by goldsmiths and gold dealers. It was clarified that Notification No. 53/86 and 167/86 are to be read separately and not together, and that for purposes of Notification No. 53/86 and 167/86 are to be read separately and not together, and that for purposes of Notification No. 53/86, the expression goldsmiths is not to be given a restricted definition but goldsmiths and silversmiths should be given the plain and ordinary meaning. Doubts have been expressed on the precise import of these instructions in respect of gold jewellery manufactured with the aid of power by or on behalf of a gold dealer by his employees who may or may not be goldsmiths. 2. The matter has been examined by the Board. It is observed that neither the Tariff nor the notification defines "Goldsmith". As such, the expression had to be given its natural meaning as commonly understood. 'Goldsmith' as stated in the Oxford Concise English Dictionary referred to any one who worked in gold. It was also observed that according to the definition there was no restriction that a goldsmith could not use power operated tools or machines or that he had to necessarily work with his hands. In that light, the workers (employed by the gold dealer) who actually worked on gold and fabricated ornaments were goldsmiths. Therefore, all gold jewellery manufactured is to be regarded as manufactured by goldsmiths and is accordingly exempt under Notification No. 53/86. 3. It is, therefore, clarified that the exemption under Notification No. 53/86 would be available in the case of manufacture of all ornaments and like articles made of gold or silver or both. 4. Field formations may be informed accordingly. This disposes Shillong Collector's letter F.No. V-71(8) 1/87/3036 dated 29-1-1990 and Collector of Central Excise, Bombay-I's F.No. V-71(30)l/T/89 dated 26-3-1990.