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.

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.