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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE )

Notification
No. 27/2016 – Central Excise
New Delhi, the 26
th
of July, 2016
G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary
in the public interest so to do, hereby exempts articles of jewellery manufactured,-
(i) from jewellery provided by a retail customer; or
(ii) by mounting of precious stones provided by a retail customer,
from so much of the excise duty leviable thereon, as is in excess of the duty of excise
payable on a value which is sum of the cost of additional materials used by the manufacturer or
principal manufacturer, as the case may be, for making such article of jewellery and labour
charges charged by the manufacturer or principal manufacturer, as the case may be, from the
retail customer.

2. For availing the exemption under this notification, the manufacturer or principal
manufacturer, as the case may be, shall maintain a proper record containing the following details,
namely:-
(i) name and address of the retail customer;
(ii) weight and purity of the jewellery, weight of precious stone provided by the retail
customer;
(iii) receipt number and date;
(iv) issue voucher number and date of sending such jewellery or precious stones to a job
worker or to the manufacturing premises of the jeweller himself; and
(v) value addition, including cost of additional materials and labour charges, charged
by the jeweller, which shall also be mentioned separately in the invoice issued to
the retail customer.

Explanation.-1 - For the purposes of this notification, weight refers to weight in grams
for precious metals; and in carats for precious stones.
Explanation.-2 - For the removal of doubts, it is hereby clarified that for the purposes of
this notification, the expression “jewellery” shall not include precious metal in any form, other
than jewellery provided by a retail customer for the manufacture of articles of jewellery to a
manufacturer or principal manufacturer, as the case may be.
[F. No. 354/25/2016 –TRU (Pt.-I)]

(Anurag Sehgal)
Under Secretary to the Government of India
notifications no 27 2016 ce | iKargos