EXCISE DUTY ON GOLD BULLION FROM 1ST MARCH 2016

[manoj lalwani]

Dear Experts

My client is a jeweller who purchases old gold ornaments from customers. These old gold ornaments are sent for refining. Labour charges is paid for refining . The refinery returns Gold Bullion with melting of 99.5 and above. My query is as follows

Q1. Whether Excise duty is payable by the jeweller who gets the refining done on job work basis, and sells the bullion recieved. If yes then at what rate and under which enrty .

Q2. Whether excise duty is payable by the jeweller who gets the refining done and uses the bullion recieved for mfg of new ornaments .

AI Summary

Jeweller's Excise Duty on Refining Gold: Rules for Bullion Sales and New Ornaments under Notification No.214/86-CE Explained A jeweller inquires about excise duty obligations when refining old gold ornaments into gold bullion. The first question addresses whether excise duty is payable when the bullion is sold after refining, with the response indicating that duty depends on whether the final product is exempt or dutiable, referencing Notification No.214/86-CE. The duty rate is 1% without Cenvat and 12.5% with Cenvat. The second question concerns duty obligations when the refined bullion is used to manufacture new ornaments, with the response confirming excise duty is payable based on transaction value.