Additional duty on gold loss in excess of the percentage permitted during 1-4-1988 to 29-3-1992 not to be levied - 18/1998 - Customs -Tariff

Additional duty on gold loss in excess of the percentage permitted during 1-4-1988 to 29-3-1992 not to be levied 1st May, 1998 Notification No. 18/98-Customs WHEREAS the notification No. 196/87-Customs, dated the 5th May, 1987 of the Government of India, Ministry of Finance, Department of Revenue permitted loss of gold in the manufacturing process not exceeding three per cent in the case of studded gold jewellery and two per cent in the case of handcrafted or machine made plain gold jewellery subject to the fulfilment of conditions specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs in this behalf during the period commencing on and from 1st April, 1988 and ending on 29th March, 1992 hereinafter referred to as the said period. AND WHEREAS, during the said period the Export and Import Policy 1988-91 permitted loss of gold of two per cent for the plain gold jewellery and in the said policy, in case of studded gold jewellery, the wastage permitted was upto three per cent to ten per cent depending upon the value-addition achieved as specified therein. AND WHEREAS show cause notices for recovery of duty from the units who have availed of gold loss in excess of the permissible percentage under notification No. 196/87-Cus., dated the 5th May, 1987 had been issued. AND WHEREAS, the Central Government is satisfied that according to a practice that was generally prevalent regarding levy of duty (including non-levy thereof), the Gem and Jewellery Units, in the Domestic Tariff Area, were availing of the gold wastage of two per cent for plain gold jewellery and upto three per cent to ten per cent in case of studded gold jewellery as per the Export and Import Policy 1988-91 during the said period. Now, therefore, in exercise of the powers conferred by section 28A of the Customs Act, 1962 (52 of 1962), the Central Government, hereby, directs that whole of the duty of customs and additional duty of customs payable on the gold loss in excess of the percentage permitted under the notification No. 196/87, dated the 5th May, 1987 but not exceeding two per cent in case of plain gold jewellery and upto three per cent to ten per cent in case of studded gold jewellery depending upon the specified value- addition as per the Export and Import Policy 1988-91 but for the said practice shall not be required to be paid in respect of the above said gold loss in the said period.