Excise Duty on Jewellers, Central Excise

[CA. Puneet Gupta]

1. Whether Excise duty is leviable on sale of Gold Bars/ Bricks purchased and sold as it is by a Excise Manufacturer of Jewellery ???

2. Whether it would make any difference is purchased from -

(a) an entity registered under Excise.

(b) an entity not registered under Excise.

Posts / Replies

[KASTURI SETHI]

Central Excise duty is always levied on manufacture of goods and not on sale as it is.'Sale as it is' trading which is in the negative list.

[Rajagopalan Ranganathan]

Sir,

If you purchase from registered person under excise (either manufacturer or dealer) you can take the credit of duty paid on such bars/bricks. Otherwise you are not eligible to take credit of duty paid on such bars/bricks. If you sell duty paid bars/bricks no further duty is leviable. If you have any doubt about the duty paid nature of the bars/bricks normally it will be treated as smuggled gold and will attract provisions of Customs Act and to certain extent FEMA.

[KASTURI SETHI]

I support the views of Sh.Rajagopalan Ranganathan Sir.

[Ganeshan Kalyani]

Vat /cst would be levied on sale.