CE - Excise duty on branded articles of jewellery - Reg. - Central Excise - M.F. (D.R.) Letter F. No. 135/1/2005-CX. IV

M.F. (D.R.) Letter F. No. 135/1/2005-CX. IV Dated 28-3-2005 Subject : CE - Excise duty on branded articles of jewellery - Reg. In this year's Budget 2005-06, an excise duty of 2% has been imposed on branded articles of jewellery of heading 7113 of the Central Excise Tariff. A clarification on this new levy was issued vide F. No. B-1/1/2005-TRU on 4th March 2005 [2005 (181) E.L.T. T7]. A section of Press has reported that at certain places, a view is being taken that advertising and selling of branded articles of jewellery also may result in jeweller being covered under excise net even when he is not manufacturing it. 2. Central Excise duty is a tax levied on goods "manufactured" in India and not on sale of goods. The duty is leviable on branded jewellery only if the 'brand name' or 'trade name' is indelibly affixed or embossed on the article of jewellery itself. The process of such fixing or embossing the brand name or trade name has been deemed to amount to 'manufacture' by a Chapter Note in Chapter 71 of Central Excise Tariff. 3. Thus, the person who affixes the 'brand name' or 'trade name' (referred to as manufacturer) should normally discharge the excise duty liability and no liability will get attached to the purchaser of the duty-paid article of jewellery, unless he undertakes any further manufacturing activity. In case of articles of jewellery made through job-work, a provision has been made [vide Rule 12AA of the Central Excise Rules] whereby the excise duty can be paid either by the principal manufacturer or by the job-worker. Thus, it is the manufacturer (i.e. principal manufacturer or the job-worker, as the case may be) of the branded article of jewellery, who needs to register with the Central Excise department, comply with the excise law and pay duty.