Branded Jewellery

[Arun Aggarwal]

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 ?

AI Summary

Branding as manufacture enables cenvat credit for duty paid, permitting duty adjustment on sale or export.
Affixing or embossing a trade name or brand on jewellery or on wares of precious metal or metal clad with precious metal is treated as manufacture, permitting cenvat credit of excise duty paid on unbranded gold jewellery and allowing that credit to be used to discharge duty when the jewellery is branded and sold or exported; setting or cladding precious or semi precious stones on jewellery is also a dutiable activity under the subheading for gold set with other precious and semi precious stones.