JEWELLERY / nominated agencies

[Arun Aggarwal]

Sir

If I buy goldbars from nominated agencies under para 4.34 of FTP 2015-20 which is duty free for exports for jewellery as advance procurement

Further there is no CVD on Gold bars as exempted

and after making jewellery can I export the same after charging excise duty of 12.5% and claim rebate under rule 18,( as I am having cenvat credit unutilized with me)?

2) Is there any condition that if I dont take any cenvat I have to charge ony 1% on jewellery?

Arun

AI Summary

Excise duty on jewellery: CVD-exempt gold bars block cenvat credit; rebate claim available on duty paid at manufacture.
If inputs or capital goods bore appropriate duty but the manufacturer did not take CENVAT credit, a reduced excise duty applies to the manufactured jewellery; the term appropriate duty includes nil or concessional duty under exemption notifications. Imported gold bars exempt from CVD do not permit the manufacturer to claim CENVAT credit. Separately, rule 18 permits rebate of duty actually paid on manufactured goods, whether concessional or full, upon export of the jewellery.