Effective rate of duty of 1% on specified goods

[Arun Aggarwal]

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.

[Himansu Sekhar]

It appears notf. No. 12/12 CE has put any precondition of only one option of rate of duty during clearances.

[KASTURI SETHI]

No hybrid procedure is allowed. Agreed with Sh. Himanshu Sha, an expert.

[Arun Aggarwal]

Sir,

Tnx for your reply.

Further I belive that it has nothing to do with [Notification No. 44/97-C.E. (N.T.), dated 30-8-1997]

Tnx for your reply in advance

arun

[KASTURI SETHI]

Notification No.44/97-CE(NT) pertains to compounded levy scheme and has nothing to do with Notification No.12/12-CE. I fail to understand why this question/point arose. However, any doubt, you may ask further.

AI Summary

Effective duty rate options: whether a unit can apply mixed cenvat and non cenvat treatments across clearances. Whether a unit may in the same premises sometimes forgo Cenvat Credit and apply a reduced effective duty on certain clearances while at other times availing credit and applying the higher tariff duty; respondents noted Notification No.12/12 CE does not expressly require a single choice of rate for all clearances, while one respondent contended a hybrid procedure is impermissible, and clarified that Notification No.44/97 CE(NT) on compounded levy is a separate scheme not directly relevant to the issue.