Excise Levy on Branded Jewellery, Central Excise

[MAHESH DADHICH]

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

Posts / Replies

[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.