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 manufacture, not resale of gold bars; input credit hinges on supplier's excise registration and duty-paid status. Excise duty is imposed on the manufacture of goods and not on resale of gold bars/bricks sold 'as it is'; purchasers may claim input credit only if the supplier is excise-registered and the goods are duty-paid, while purchases from unregistered suppliers do not permit credit; duty-paid goods are not subject to further excise on resale, but suspicious or non-duty-paid articles may attract customs enforcement and VAT/CST on sale.