What is the rate of duty on manufacture of pure gold bullion from raw gold/ gold dust/ dore bars by refining process?
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Pure gold does not attract any Excise Duty.
Under Chapter heading 7108 gold attracts 12% duty. However, Notification no. 12/2012 CE dated 17.3.2012 has prescribed effective rate of duty in respect of different forms of gold. Under Sl.No.188 "Primary gold converted with the aid of power from any form of gold other than gold ore, concentrate or dore bar" attracts Nil duty. The explanation provides that "primary gold" means gold in any unfinished or semi-finished form and includes ingots, bars, blocks, slabs, billets, shots, pellets, rods, sheets, foils and wires. Under Sl.No.189 Gold bars, other than tola bars, bearing manufacturer‘s engraved serial number and weight expressed in metric units manufactured in a factory starting from the stage of-
(a) Gold ore or concentrate; (b) Gold dore bar; or (c) Silver dore bar attracts 3% duty. The explanation thereunder is as under:
Explanation.- For the purposes of this entry, ‘gold dore bar’ shall mean dore bars having gold content not exceeding 95% and ‘silver dore bar’ shall mean dore bars having silver content not exceeding 95% accompanied by an assay certificate issued by the mining company, giving details of composition
Pure gold attracts Nil rate of duty.