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Union of India - Section

Section 12 in Articles of Jewellery (Collection of Duty) Rules, 2016

12. Optional scheme.

(1)Notwithstanding anything contained in sub-rule (1) of rule (7) or sub-rule (3) of rule (8), the manufacturer or principal manufacturer, as the case may be, dealing in both manufactured and traded articles, may also pay excise duty on his first sale value, by treating his first sales during a month solely as sale of manufactured articles, if the quantity of such sales during the month is less than or equal to the opening stock of manufactured articles at the start of such month, at his own option, by giving a written declaration to the excise authorities having jurisdiction by the 28th day of February of the previous financial year:Provided that for the financial year 2016-17, such written declaration may be given to the Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, having jurisdiction, by the 31st day of July, 2016:Provided further that for the period beginning from 1st March, 2016 to 31st March, 2016 such declaration may be given by the 31st day of July, 2016:
(2)An option given under sub-rule (1) shall be valid for whole of the financial year for which it is given by the manufacturer or the principal manufacturer, as case may be.
(3)For availing the optional scheme under sub-rule (1) a manufacturer or principal manufacturer, as the case may be, shall maintain,-
(a)a record containing the stock details of manufactured articles and traded articles separately for silver studded articles; gold or platinum articles studded with diamonds; and other gold or platinum articles, on weight or caratage basis; and
(b)a record of the value of such traded articles separately at their purchase prices.
(4)The opening stock, sales and closing stock of three types of articles, referred to in sub-rule (3), shall be calculated separately for assessing the excise duty payable during a month.
(5)The sales in excess of opening stock of manufactured articles, during a month shall be deemed to be sale out of the opening stock of traded articles on which no excise duty shall be payable.
(6)If the sales during a month are in excess of the sum total of the opening stock of the manufactured articles and opening stock of traded articles, then such excess sales shall first be deemed to be that of manufactured articles received during that month and the balance, if any, shall be deemed to be that of traded articles received during the month.
(7)If the sales during a month are less than the opening stock of manufactured articles, then the balance stock of manufactured articles shall be carried forward and the opening stock of manufactured articles for the succeeding month shall be the sum total of such carried forward stock of manufactured articles and quantity of manufactured articles received from the job worker's premises or manufactured, during the month.The following illustrates the above rules (all figures in kg):Illustration 1. - A manufacturer or a principal manufacturer:
has an opening stock as on 1st April manufactured stock traded stock
silver studded articles 60 20
gold or platinum articles studded with diamonds 30 20
other gold or platinum articles 20 20
     
sells during the month of April total sales
silver studded articles 50
gold or platinum articles studded with diamonds 20
other gold or platinum articles 10
     
receives during the month of April manufactured stock traded stock
silver studded articles 60 10
gold or platinum articles studded with diamonds 30 30
other gold or platinum articles 20 40
As the sales during the month for the three types of articles are less than the opening stocks of such manufactured articles, the same shall be deemed to be that of manufactured articles only, as summarised below:
Quantity of articles deemed to be sold during the month ofApril of manufactured articles of traded articles
silver studded articles 50 0
gold or platinum articles studded with diamonds 20 0
other gold or platinum articles 10 0
Total excise duty payable by such manufacturer or principal manufacturer for the month of April shall be the sum total of the excise duty payable on 50 kg of silver studded articles, 20 kg of gold or platinum articles studded with diamonds and 10 kg of other gold or platinum articles.After deducting the sales during the month of April, the closing stocks of manufactured and traded articles as on 30th April, which shall also be the opening stock as on 1st May, of three types of articles, with the manufacturer or principal manufacturer shall be as under:
Closing stock as on 30th April / opening stock as on 1st May manufactured stock traded stock
silver studded articles 70 30
gold or platinum articles studded with diamonds 40 50
other gold or platinum articles 30 60
Illustration 2. - A manufacturer or a principal manufacturer:
has an opening stock as on 1st April manufactured stock traded stock
silver studded articles 60 20
gold or platinum articles studded with diamonds 30 20
other gold or platinum articles 20 20
     
sells during the month of April total sales
silver studded articles 70
gold or platinum articles studded with diamonds 40
other gold or platinum articles 30
     
receives during the month of April manufactured stock traded stock
silver studded articles 60 10
gold or platinum articles studded with diamonds 30 30
other gold or platinum articles 20 40
As the sales during the month for the three types of articles are more than the opening stocks of respective articles, the first sale equal to the opening stock of each type of articles shall be deemed to be that of manufactured articles of each type, as summarised below:
Quantity of articles deemed to be sold during the month ofApril of manufactured articles of traded articles
silver studded articles 60 10
gold or platinum articles studded with diamonds 30 10
other gold or platinum articles 20 10
Total excise duty payable by such manufacturer or principal manufacturer for the month of April shall be the sum total of the excise duty payable on 60 kg of silver studded articles, 30 kg of gold or platinum articles studded with diamonds and 20 kg of other gold or platinum articles.After deducting the sales during the month of April, the closing stocks of manufactured and traded articles as on 30th April, which shall also be the opening stock as on 1st May, of three types of articles, with the manufacturer or principal manufacturer shall be as under:
Closing stock as on 30th April / opening stock as on 1st May manufactured stock traded stock
silver studded articles 60 20
gold or platinum articles studded with diamonds 30 40
other gold or platinum articles 20 50
Illustration 3. - A manufacturer or a principal manufacturer:
has an opening stock of as on 1st April manufactured stock traded stock
silver studded articles 60 20
gold or platinum articles studded with diamonds 30 20
other gold or platinum articles 20 20
     
sells during the month of April total sales
silver studded articles 70
gold or platinum articles studded with diamonds 60
other gold or platinum articles 30
     
receives during the month of April manufactured stock traded stock
silver studded articles 60 10
gold or platinum articles studded with diamonds 30 30
other gold or platinum articles 20 40
In this case, the sales during the month for the three types of articles are more than the opening stocks of respective manufactured articles. Further, the sales of in respect of `gold or platinum articles studded with diamonds' are even higher than the sum total of opening stocks of manufactured articles and traded articles.That being so, the first sales equal to the opening stock of `silver studded articles' and `other gold or platinum articles' shall be deemed to be that of manufactured `silver studded articles' and `other gold or platinum articles' respectively.However, in respect of `gold or platinum articles studded with diamonds', the sales of 60 kg shall be first counted against that of opening stock of manufactured articles [that is 30 kg], thereafter against the opening stock of traded articles [that is 20 kg] and the balance [that is 10 kg] shall be counted towards the manufactured articles received during the month, as summarised below:
Quantity of articles deemed to be sold during the month ofApril of manufactured articles of traded articles
silver studded articles 60 10
gold or platinum articles studded with diamonds 40 20
other gold or platinum articles 20 10
Total excise duty payable by such manufacturer or principal manufacturer for the month of April shall be the sum total of the excise duty payable on 60 kg of silver studded articles, 40 kg of gold or platinum articles studded with diamonds and 20 kg of other gold or platinum articles.After deducting the sales during the month of April, the closing stocks of manufactured and traded articles as on 30th April, which shall also be the opening stock as on 1st May, of three types of articles, with the manufacturer or principal manufacturer shall be as under:
Closing stock as on 30th April / opening stock ason 1st May manufactured stock traded stock
silver studded articles 60 20
gold or platinum articles studded with diamonds 20 30
other gold or platinum articles 20 50
Explanation-1. - For the purposes of this option, exports by a manufacturer or a principal manufacturer, as the case may be, shall be counted towards the sale of manufactured articles during the month.Explanation-2. - For the removal of doubts, it is hereby clarified that in case of stock transfer between two branches of a manufacturer or a principal manufacturer with centralised registration, as the case may be, which do not involve sale, there shall be no liability to pay excise duty at the stage of stock transfer, provided such stock transferred manufactured articles or traded articles are added in corresponding stocks of manufactured articles or traded articles of the recipient branch.