Sir,
1) If we buy unbranded gold jewellery from a manufacturer after paying 12.5% excise duty and further Brand it , can we take cenvat of 12.5% and pay the excise duty of balance after using the cenvat at 12.5% to sell further or for export under rule 18 ? pls refer to notification no 2/2011- CE dt 01/3/2011 also
2) If I clad precious/ semi precious stones on the jewellery after paying 12.5 % excise duty, will it be an excisable/ manufacturing activity to take cenvat ?
Branding Unbranded Jewellery or Adding Stones Counts as 'Manufacture' Under Chapter 71 of CETA, 1985 A query was raised regarding the excise duty implications on branding unbranded gold jewellery and adding precious stones. The discussion clarified that branding unbranded jewellery or adding stones constitutes 'manufacture' under Chapter 71 of CETA, 1985, allowing for the use of CENVAT credit on the 12.5% duty paid. This credit can be applied towards the duty on branded jewellery sales or exports under rule 18. The response was appreciated for its clarity and detailed analysis, confirming the applicability of the 12.5% duty for both branding and stone cladding activities. (AI Summary)
TaxTMI 
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