Amendments in Central Excise Rules, 2002

[Ref: Central Excise Notification No. 08 (N.T.) dated 24th March 2011]

Jewellery and other articles of precious metals bearing brand name

Liability to pay excise duty

In respect of levy of excise duty @ 1% on jewellery and other articles of precious metals which bear or are sold under a brand name, the provisions of Rule 12AA of the Central Excise Rules and Rules 2 & 4 of the Cenvat Credit Rules as amended by notification nos. 8/2011-Central Excise (N.T.) and 9/2011-Central Excise (N.T.) both dated 24th March 2011 may kindly be referred to. As in the case of branded garments, in case of goods falling under chapter heading 7113 and 7114 also, where a brand owner gets jewellery or articles other than jewellery made from any other person, and supplies the raw materials such as gold/ silver/ gemstones etc. (of chapter 71) to the job-worker for such manufacture, the duty liability would be on such person who gets jewellery or articles made from the job worker, unless the job worker opts to discharge the duty liability. However, a person manufacturing jewellery of heading 7113 or articles of heading 7114 bearing a brand name or sold under a brand name on his own account will be liable to pay excise duty unless he claims benefit of the SSI exemption.

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 2002, namely:-

1. (a) These rules may be called the Central Excise (Second Amendment) Rules, 2011.

(b) They shall come into force on the date of their publication in the Official Gazette.

2. In the Central Excise Rules, 2002,—

(i) in rule 12, in sub-rule (i), after the fifth proviso, the following proviso shall be inserted, namely,-

“Provided also that, where an assessee is availing the exemption notification of the Government of India, Ministry of Finance (Department of Revenue) No. 1/2011- Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i) vide number G.S.R. 116(E) dated the 1st March, 2011 and does not manufacture any other excisable goods other than those specified in the said notification, he shall file a quarterly return in the form specified by notification by the Board, of production and removal of goods and other relevant particulars, within ten days after the close of the quarter to which the return relates”

(ii) in rule 12AA, in sub-rule (1), for the words and figures “jewellery falling under heading 7113” the words and figures “jewellery or other articles of precious metals falling under heading 7113 or 7114 as the case may be” shall be substituted.

[F. No. B-1/3/2011 –TRU]