7113 jewellery excise

[Arun Aggarwal]

Sir

I am a manufacturer of Jewellery under 7113,having two units in Delhi with same consitution and name with different excise registerations as principle manufacturer.

my question is that can I take the cenvat of gold in one unit and pay excise duty of 12.5%. and dont take the cenvat unit in the other unit and pay 1% excise duty on clearances. Or as I have taken cenvat in one unit I have to pay full duty of 12.5% on both the units.

Arun

[KASTURI SETHI]

Dear Querist,

Yes. You can adopt different procedure for both units as mentioned above, since registration being separate. The condition of clubbing the clearance of specified goods from "one or more factories" under Notification No.8/2003-CE dated 1.3.2003 as amended, is meant for arriving at threshold exemption limit and for eligibility as SSI unit.

[Arun Aggarwal]

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi.

AI Summary

Separate registration allows distinct excise treatment for co located manufacturing units, enabling different Cenvat and duty procedures. A manufacturer with two separately registered jewellery units may adopt different excise procedures: one unit may avail Cenvat credit on input gold and follow the credit-based duty procedure, while the other may forgo Cenvat and follow the presumptive duty procedure. Separate registrations permit different treatments; the clubbing provision applies only for calculating threshold exemption and SSI eligibility, not to require uniform duty or credit treatment across distinct registrations.