Sir
I have a unit in Delhi as a jewellery manufacturer, I am taking cenvat of 9.35% on the gold bar and paying 12.5% excise duty on the jewellery tarriff 7113 . In the same unit can I purchase Gold bar and without taking cenvat charge 1% excise duty on jewellery . means I pay the duty on purchase to purchase basis 1% where no cenvat taken and 12.5% where I have taken the cenvat and make seperate accounts. Or I have to stick to one option of taking cenvat or no cenvat in the whole year.
Jewellery manufacturers cannot apply different excise duty rates on gold bars and jewellery within the same unit. A jewellery manufacturer in Delhi inquired about the possibility of applying different excise duty rates on gold bars and jewellery within the same unit. Specifically, they asked if they could charge 1% excise duty without taking CENVAT credit and 12.5% with CENVAT credit, maintaining separate accounts for each. The responses indicated that notification No. 12/12 CE does not allow for such a hybrid procedure, requiring a single option for the rate of duty. Additionally, it was clarified that Notification No. 44/97-CE(NT) is unrelated to the issue discussed. (AI Summary)
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