AI Drafter 
TaxTMI 
TaxTMI 
2023 (2) TMI 1100
X X X X Extracts X X X X
X X X X Extracts X X X X
.... SAD exemption notification]. 2. The effective rates of duty of CVD for (i) Articles of jewellery and (ii) Articles of silver jewellery are prescribed in Entry No. 199 of the CVD exemption notification and the relevant portion of this notification is as follows: "Notification No. 12/2012-Central Excise G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) and in supersession of the notification of the Government of India. xxxxxxxxxx, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in column (3) of the Table below read with relevant List appended hereto and falling within the chapter, heading or sub-heading or tariff item of the First Schedule to the Central Excise Act, 1985 (5 of 1986) (hereinafter referred to as the Excise Tariff Act), as are given in the corresponding entry in column (2) of the said Table, from so much of the duty of excise specified thereon under the First Schedule to the Excise Tariff Act, as is in excess of the amount calculated at the rate specified in the correspon....
X X X X Extracts X X X X
X X X X Extracts X X X X
....goods has been taken by the manufacturer such goods (and not the buyer of such goods) under rule 3 or rule 13 of the CENVAT Credit Rules, 2004." 8. Thereafter, entry no. 199 was again amended by notification dated 26.07.2016 and it is as follows: Sl. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate Condition No. 199 71 (I) Articles of jewellery; (II) Parts of Articles of Jewellery; (III) Articles of silver jewellery, other than studded with diamond, ruby, emerald, or sapphire. 1% 1% NIL 16 16 - 9. The SAD exemption notification provides concessional rate of duty at 1% as follows: "Notification No. 21/2012-Customs G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and in supersession of the notification xxxxxxxxxx, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in column (3) of the Table below, falling within the chapter, heading, sub-heading or tariff item of the First Sche....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ys and Findings Suppliers 23.10.2015 to 08.01.2017 06.06.2019 6. 52242/2018 Derewala Industries Ltd. 06.11.2015 to 25.11.2016 10.06.2019 14. The issues that arise for consideration in these appeals are as follows: (i) Whether 'parts of Articles of jewellery' are covered in the phrase 'Articles of jewellery', when not separately specified? (ii) Whether 'parts of Articles of silver jewellery' are covered in the phrase 'Articles of silver jewellery', when not separately specified? 15. The relevant facts of all six appeals are similar and so the facts of the appeal filed by M/s. Kinjal Precisous Pvt. Ltd. are stated. The appellant filed Bills of Entry for clearance of gold/silver findings and claimed exemption from payment of CVD under the CVD exemption notification, as amended from time to time as also exemption from payment of SAD under the SAD exemption notification. The Bills of Entry were appraised and the appellant discharged the customs duty, but subsequently it was observed by the officers that the appellant was not entitled to avail the benefit of CVD exemption notification or the SAD exemption notification. Accordingly, a show caus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....39;Articles of Jewellery' only not about 'Parts of Articles of Jewellery'. The 'Articles of Jewellery' and 'Parts of Articles of Jewellery' can not be considered as one and same as discussed in para (5) above which is also confirm from the notification no. 26/2016-CE dated 26.07.2016 wherein concessional rate of 1% was extended for the first time to 'Parts of Articles of Jewellery' falling under heading No. 7113. If the intention of the statue was that the Article of Jewellery for the purpose of the Exemption Notification covers parts of Articles of Jewellery also, then there was no need for issuance of notification no. 26/2016-CE dated 26.07.2016 and inclusion of separate entry for "Parts of articles of jewellery". The appellant has also contended that no prudent legislature can levy higher duty on import of parts for indigenous production and lesser duty on import of finished goods. The question of levy higher duty on import of parts and lesser duty on import of finished goods by the statue is beyond the jurisdiction of this appellate authority. The words and phrases provided under the exemption notification are to be interpreted strictly and t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 11. Now I come to the issue of exemption of Special Additional Duty of - Customs under Notification No. 21/2012-Cus dated 17.03.2012 on import of Gold/Platinum /Silver Findings treating these goods as Articles of Jewellery'. xxxxxxxxxxx On perusal of the above entry No. 78, it can be seen that the notification prescribes duty @ 1% on Articles of jewellery falling under 7113 only and Parts of articles of jewellery falling under 7113 have not been included therein. Further it has already been held in the preceding paras that both the items i.e "Articles of jewellery" and "Parts of articles of jewellery" can not be considered as one and same. Therefore, I hold that exemption under Notification No. 21/2012-Cus dated 17.03.2012 is also not available on Gold/Platinum /Silver Findings. (emphasis supplied) 18. Shri Arvind Birla, learned counsel for the appellant assisted by Shri Manoj Makkar made the following submissions: (i) 'Parts' are included as 'articles', as would be clear from the following: (a) Legislature could not have intended to exempt articles of jewellery/silver jewellery but levy duty on parts of articles of jeweller....
X X X X Extracts X X X X
X X X X Extracts X X X X
....submissions advanced by the learned counsel for the appellant and the learned authorised representative appearing for the department have been considered. 21. The issue in all the appeals is as to whether 'parts of jewellery' can also avail exemption under the CVD exemption notification and the SAD exemption notification. 22. It is not in dispute that the goods involved in these appeals, namely gold/platinum/silver findings that have been imported by the appellant are 'parts of jewellery'. Chapter 71 contained in section XIV to the Customs Tariff Act deals with natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin. 23. It would be seen that articles of jewellery and parts of articles of jewellery have been separately classified under the restrictive sub-headings of the Customs Tariff. They should, therefore, be treated as separate articles. 24. A perusal of the CVD exemption notification also shows that entry no. 199 of Chapter heading 7113 contains (I) articles of jewellery and (II) articles of silver jewellery. It does not exempt 'parts of articles of jewellery'. ....