Respected Professionals!
Greetings!
We find that Chapter Heading 71131910 of the Central Excise Tariff mentioned the basic rate of central excise duty as 12%.
We find that under Notification No.02/2011, dated 01.03.2011 (vide Sl.No.48 of the aforesaid notification), Government of India had notified the rate of central excise duty applicable to jewellery falling under Central Excise Chapter Heading 7113 19 10 as 6% ad veloram.
We find that there is yet another notification, namely, Notification No.12/2012, dated 17.3.2012 (vide Sl.No.199) which notified the rate of excise duty as 1%. There was a condition attached to the notification that no CENVAT credit will be available.
However, we find that on account of Section 138 of the Finance Act, 2012 which received the Presidential assent on 28th May, 2012, retrospectively with effect from 17.03.2012, Sl.No. 199 of Notification No. 12/2012, dated 17.3.2012 was amended. According to this amendment, the domestic rate of central excise duty became Nil rate. The condition pertaining to non availment of CENVAT credit was also removed. We sincerely understand that this change was brought about on account of representation given by domestic manufacturers and effective rate of central excise duty was made Nil rate. This is the final development.
To conclude, let us submit the contents of this email briefly, as given below:
Now, we are intending to restart import of jewellery:
With regard to the applicable rate of countervailing duty, we find that though by Notification No.02/2011, dated 01.03.2011, the rate was notified at 6% (CENVAT being available to domestic manufacturers), the last development was the amendment brought about to Notification No.12/2012, dated 17.03.2012 by Section 138 of the Finance Act, 2012 which received the Presidential assent on 28th May, 2012, but made retrospective with effect from 17.3.2012. We sincerely believe that this notification notifying the effective rate of excise duty as Nil rate will apply to us.
But section 3 of the customs Act warns that when there are two duties available, whichever higher would be applicable.
Hence request any of the professional to to kindly give us your valuable opinion on CVD applicable to us.
Thanks and Sincerely yours
N Suresh
Mobile 09840344175
Mobile 09840344175
