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Simplified Central Excise Norms for Jewellery Sector

Simplified Central Excise Norms for Jewellery Sector 
The Ministry of Finance has come out with an office memorandum to circulate a press release of 13th July 2016 for informing the “Simplified Central Excise norms for jewellery sector notified” to Jewellery Sector. The purpose was to inform the procedures, applicability of Excise Duty and exemption on articles of jewellery.
 
F. No.296/07/2016-CX.9
Govt. of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)
 
New Delhi, the 28th   July, 2016
OFFICE MEMORANDUM
 
Please find enclosed a press release issued by Central Board of Excise and Customs w.r.t. — Simplified Central Excise norms for jewellery sector notifiedfor taking necessary action at your end.
 
Encls: As above
 
Sd-
(Manish Mohan Govil)
Official Spokesperson
Phone No. 011- 2309 3667
 
Sh. D.S. Malik,
ADG (M&C),
Ministry of Finance,
North Block, New Delhi.
                                                                         PRESS RELEASE
Subject: Simplified Central Excise norms for jewellery sector notified – Implementation of the recommendations of the Sub-Committee of the High Level Committee – Regarding.
In this year’s Budget, central excise duty of 1% without input and capital goods tax credit or 12.5% with credit was imposed on articles of jewellery falling under heading 7113 of the First Schedule to the Central Excise Tariff 1985. Subsequent to that, the Government had set up a Sub-Committee of the High Level Committee, headed by Dr. Ashok Lahiri to interact with Trade & Industry on issues relating to procedure and compliance relating to excise duty of articles of jewellery.
2. The  Sub-Committee  has  given  its  report  on  23.06.2016,  which  has  been accepted by the Government [Press release issued by the Government on the 13th July, 2016  refers].  In  this  connection,  the  Central  Government  has  issued  following notifications and circulars to give effect to the Sub-Committee’s recommendations:
A. Notifications issued:
Notification No.
                            Gist of notifications
26/2016             –
Central Excise
Seeks to amend notification No. 12/2012-Central Excise so as to prescribe 1% excise duty (without input and capital goods credit) on parts of articles of jewellery falling under heading 7113 of the Central Excise Tariff Act, 1985 (5 of 1986), and to prescribe a criteria for classification of an articles of jewellery or part of articles of jewellery or both as that of a particular precious metal.
27/2016             –
Central Excise
Seeks to partially exempt Central Excise duty on articles of jewellery falling under heading 7113 of the Central Excise Tariff Act, 1985 (5 of 1986) manufactured by:
(a)    re-conversion of jewellery given by the retail customer, or
(b)    mounting of precious stone given by the retail customer.
28/2016             –
Central Excise
Seeks  to  amend  notification  No.  8/2003-Central  Excise  dated  1st March, 2003, so as to increase for articles of jewellery or parts of articles of jewellery or both, falling under heading 7113 of the Central Excise Tariff Act, 1985 (5 of 1986):
(a)    the SSI Exemption limit from Rs. 6 crore to Rs. 10 crore; and
(b)   the SSI Eligibility limit from Rs. 12 crore to Rs. 15 crore.
29/2016             –
Central Excise
Seeks to amend notification No. 17/2011-Central Excise, dated the 1st March, 2011, so as to exclude handicrafts falling under heading 7113 of the Central Excise Tariff Act, 1985 (5 of 1986), from the purview of excise duty exemption for “handicrafts”.
33/2016 – Central
Excise (N.T.)
Seeks to notify, for articles of jewellery or parts of articles of jewellery or both, falling under heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986),
(a) for articles of jewellery or parts of articles of jewellery or both (other than those which are manufactured from the precious metal provided by the retail customer), the first sale value, that is the value at which such articles of jewellery or parts of articles of jewellery or both, are sold for the first time, as the tariff value;
(b) for articles of jewellery or parts of articles of jewellery or both manufactured from the precious metal provided by the retail customer, the value which is sum of,-
i.    the cost of additional materials used by the manufacturer or principal manufacturer, as the case may be, for making such articles of jewellery;
ii.  the labour charges charged by the manufacturer or principal manufacturer, as the case may be, from the retail customer; and
iii. the value of precious metal provided by the retail customer, as the tariff value.
34/2016 – Central
Excise (N.T.)
Seeks to notify the Articles of Jewellery (Collection of Duty) Rules, 2016, applicable to articles of jewellery or parts of articles of jewellery or both falling under heading 7113 of the Central Excise Tariff Act, 1985 (5 of 1986). These rules, inter-alia, provide manner of payment of Central  Excise  duty on  articles  of jewellery or parts  of articles  of jewellery or both, including an optional scheme for payment of such Excise duty.
35/2016 – Central
Excise (N.T.)
Seeks to amend the Central Excise Rules, 2002 in relation to articles of jewellery or parts of articles of jewellery or both, falling under heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), so as to:
i.    provide that the quarterly return (ER.8) will also apply to the manufacturers or principal manufacturers of parts of articles of jewellery, falling under heading 7113;
ii. prescribe that the date of submission of quarterly return, for manufacturers or principal manufacturers of articles of jewellery or parts of articles of jewellery or both, falling under heading
7113, for quarter ending on 31st March, 2016, and quarter ending on 30th June, 2016, shall be the 10th August, 2016; and
iii. as separate rules are being prescribed for articles of jewellery or parts of articles of jewellery or both falling under heading 7113 of the said Schedule to the said Tariff Act, applicability of Rule 12AA is being restricted to articles of precious metals falling under heading 7114.
36/2016 – Central
Excise (N.T.)
Seeks to amend the CENVAT Credit Rules, 2004 in relation to articles of jewellery or parts of articles of jewellery or both, falling under heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), so as to include a principal manufacturer of articles of jewellery or parts of articles of jewellery or both as manufacturer for the purposes of the CENVAT Credit Rules, 2004.
37/2016 – Central
Excise (N.T.)
Seeks to provide a modified format for quarterly return, ER-8, for return of excisable goods cleared at the Central Excise duty rate of 1% [including articles of jewellery or parts of articles of jewellery or both, falling under heading 7113] or 2%.
38/2016 – Central