Section 13(3) in Articles of Jewellery (Collection of Duty) Rules, 2016
(3)For an assessee who opts to pay the excise duty as per the optional scheme under rule (12), the cumulative sales of a particular type of articles on which duty has been paid or which have been exported till the end of a particular return cycle are less than the cumulative receipts till the end of that return cycle of such manufactured articles, then the dead stock of such articles at the end of such return cycle, equal to the difference between the cumulative receipts of manufactured stock and the cumulative sales till the end of such return cycle shall be deemed to be that of manufactured articles, and balance, if any, shall be considered as that of traded articles.Illustration. - Thus, two alternative situations can be considered in treatment of the dead stock at the end of the quarter:Situation 1 - Cumulative sales at the end of return cycle are more than the cumulative receipts of manufactured articles:i. Cumulative receipts of manufactured silver studded articles till the end of a quarter are 100 kg.ii. Cumulative sales of manufactured silver studded articles till the end of the quarter are 110 kg (out of which on 100 kg the manufacturer or principal manufacturer, as the case may be, has paid excise duty or which have been exported).iii. Then, whole of the dead stock silver studded articles at the end of such quarter shall be treated as that of traded stock and new articles made out of such dead stock on its receipt back would form part of traded stock.Situation 2 - Cumulative sales at the end of return cycle are less than the cumulative receipts of manufactured articles:i. Cumulative receipts of manufactured silver studded articles till the end of a quarter are 100 kg.ii. Cumulative sales of manufactured silver studded articles till the end of the quarter are 90 kg (out of which on 90 kg the manufacturer or principal manufacturer, as the case may be, has paid excise duty or which have been exported).iii. Then, 10 kg [100 kg - 90 kg] of dead stock of silver studded articles at the end of such quarter shall be treated as that of manufactured stock and new articles made out of such dead stock on its receipt back would form part of manufactured stock. Any dead stock of silver studded articles at the end of such quarter in excess of 10 kg shall be deemed to be that of traded stock.
