Download Document

F.No.354/38/2011 -TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
*****
Room No. 146 I, North Block
New Delhi, dated the 2nd March, 2012
To
Chief Commissioners of Central Excise (All)
Chief Commissioners of Central Excise & Customs (All)
Chief Commissioners of Customs (All)
Directors General (A111
Sir/Madam,
Subject: - Clarification regarding levy of Excise duty on branded precious metal
jewellery-reg.
I am directed to refer to D.O.F.No. B-1/3/2011-TRU dated 25.03.2011 at the
post-budget stage 2011-12 containing the following clarification about the scope of
Central Excise levy applicable to precious metal jewellery of CETH 7113
manufactured or sold under a brand name:
"ABCjewellers" advertises and sells its products under the brand "Star" or puts a logo like
. * V \
ABC i.e. in a stylized manner. It also puts the same brand name or an abbreviation thereof or a
mark which has a connection with such brand name either on the jewellery or article itself or on
the packing such as the jewellery box or pouch or even on the warranty card or certificate of
quality. Such goods will clearly be treated as branded and will be liable to duty."
2. It is learnt that based on the said clarifications some enquiries have been initiated
by the departmental agencies seeking to demand duty on such articles of jewellery which
are packed in boxes, pouches etc. bearing a trade name or brand name or mark.
References have since been received from the Trade requesting for providing clarity on

levy of excise duty on jewellery sold under a Brand name. The industry has drawn
attention to condition no. 8 of notification no.5/2006-CE dated 01.03.06 which provides
that the exemption shall not be applicable to articles of jewellery of heading no 7113 on
which brand name or trade name is indelibly affixed or embossed on the articles of
jewellery itself. It has been argued that accordingly only such jewellery where brand
name or trade name is indelibly affixed or embossed on the articles of jewellery itself
should attract excise duty and duty should not be charged on the articles which do not
themselves bear such marking but which are packed in a jewellery box or pouch bearing a
trade name or brand name or in whose case, the warranty card or certificate of quality
issued at the time of sale bears a trade name or brand name.
3. The issue has been examined. Condition no. 8 of notification no.5/2006-CE dated
01.03.06, is also relevant in this regard. The said condition provides that "the exemption
shall not be applicable to articles of jewellery of heading no 7113 on which brand name
or trade name is indelibly affixed or embossed on the articles of jewellery itself."
5. It is clarified that the excise duty leviable on precious metal jewellery, manufactured
or sold under a brand name, is attracted only on such jewellery on which the trade/brand
name or any such mark or symbol or even a number which is cross referred with such
trade/brand name ((not being a house mark used by jewellers for identification of
jewellery at the time of exchange/resale) is indelibly marked or embossed. If such brand
name is not affixed or embossed on the jewellery or article itself but appears on the
packing such as the jewellery box or pouch or even on the warranty card or certificate of
quality, such goods will not be treated as branded jewellery and thus will not be liable to
excise duty. The clarification issued in this regard vide D.O.F.No.B-l/3/2011-TRU,
dated the 25th March, 201 1 stands modified to this extent.
Yours faithfully,
(Vivek John)
Joint Secretary(TRU)