Excise Levy on Branded Jewellery

[Guest]

In the Budget 2011-12, Central Excise has been levied vide Notification No.1/2011 dated 01/03/2011. Query is as under:

1. Branding means Jewellery must have brand name affixed on product itself like, trade name,symbol,monogram, label, signature, or invented words .

2. In case of Jewellery manufactured through third party Job Worker who is liable to pay Excise Duty Principal or Job Worker. Is Job Worker is required to registered under central excise and also required to maintain statutory records.

3. Is there any effect of Jewellery Manufactured by one branch of Company through other branch of same company outside state ?

CA Mahesh Dadhich

[Surender Gupta]

Vide notification no. 1/2011, there is no requirement that brand name should be affixed on the product itself. Where the goods are sold under the brand name, that may be sufficient. Like case, packing material etc. would be sufficient to conclude whether articles are sold under brand name or not.

However, as per rule 12AA of central excise rules, 2002, applicable to job worker specifies that branded goods must have brand name affixed or engraved on the product.

Rule 12AA of the central excise rules, 2002 gives an option to discharge excise duty liability by a person who get goods manufactured through job worker.

AI Summary

Clarification on excise duty for branded jewellery: Packaging counts as branding under Notification No.1/2011; Rule 12AA addresses liability. A discussion on a forum addressed the excise levy on branded jewellery as per Notification No.1/2011. The query raised concerns about the definition of branding, the liability of excise duty between a principal and a job worker, and the implications for jewellery manufactured across company branches in different states. The response clarified that branding does not require the brand name to be affixed directly on the product; packaging suffices. Rule 12AA of the Central Excise Rules, 2002, allows for excise duty liability to be discharged by the person who commissions the manufacturing through a job worker.