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[Cites 0, Cited by 0] [Section 12] [Entire Act]

Union of India - Subsection

Section 12(7) in Articles of Jewellery (Collection of Duty) Rules, 2016

(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.