Excise Duty on Jewellers

[CA. Puneet Gupta]

1. Whether Excise duty is leviable on sale of Gold Bars/ Bricks purchased and sold as it is by a Excise Manufacturer of Jewellery ???

2. Whether it would make any difference is purchased from -

(a) an entity registered under Excise.

(b) an entity not registered under Excise.

[KASTURI SETHI]

Central Excise duty is always levied on manufacture of goods and not on sale as it is.'Sale as it is' trading which is in the negative list.

[Rajagopalan Ranganathan]

Sir,

If you purchase from registered person under excise (either manufacturer or dealer) you can take the credit of duty paid on such bars/bricks. Otherwise you are not eligible to take credit of duty paid on such bars/bricks. If you sell duty paid bars/bricks no further duty is leviable. If you have any doubt about the duty paid nature of the bars/bricks normally it will be treated as smuggled gold and will attract provisions of Customs Act and to certain extent FEMA.

[KASTURI SETHI]

I support the views of Sh.Rajagopalan Ranganathan Sir.

[Ganeshan Kalyani]

Vat /cst would be levied on sale.

AI Summary

Excise Duty Applies to Manufacturing, Not Sale of Gold Bars; Duty-Paid Bars Exempt from Further Duty. A discussion on the applicability of excise duty on the sale of gold bars or bricks by a jewelry manufacturer concluded that excise duty is levied on the manufacture of goods, not on their sale. If purchased from a registered excise entity, credit for duty paid can be claimed; otherwise, it cannot. Selling duty-paid bars incurs no further duty. If the duty status is unclear, the bars may be considered smuggled, invoking customs and FEMA regulations. Additionally, VAT or CST would apply to the sale.