|
Gold less in excess of percentage in case of plain/ studded jewellery
Notification
No. 18 dated 1st May 1998
Whereas
the notification No. 196/87-Customs, dated the 5th May, 1987 of the
Government of India, Ministry of Finance, Department of Revenue permitted loss
of gold in the manufacturing process not exceeding three per cent in the case of
studded gold jewellery and two per cent in the case of hand-crafted or
machine-made plain gold jewellery subject to the fulfilment of conditions
specified by the Assistant Commissioner of Customs in this behalf during the
period connecting on and from 1st April 1988 and ending on 29th
March, 1992 hereinafter referred to as the said period.
And
whereas, during the said period the Export and Import Policy 1988-91 permitted
loss of gold of two percent for the plain jewellery and in the said policy, in
case of studded gold jewellery, the wastage permitted was upto three per cent to
ten per cent depending upon the value addition achieved as specified therein.
And
whereas, show cause notices for recovery of duty from the units who have availed
of gold loss in excess of the permissible percentage under notification No. 196/
87-Customs dated the 5th May, 1987 had been issued.
And
whereas, the Central Government is satisfied that according to a practice that
was generally prevalent regarding levy of duty (including non-levy thereof), the
Gem and Jewellery Units, in the Domestic Tariff Area, were availing of the gold
wastage of two per cent for plain gold jewellery and upto three per cent to ten
per cent in case of studded gold jewellery as per the Export and Import Policy
1988-91 during the said period.
Now,
therefore in exercise of the powers conferred by Section 28A of the Customs Act,
1962 (52 of 1962), the Central Government, hereby directs that whole of the duty
of Customs and additional duty of Customs payable on the gold loss in excess of
the percentage permitted under the notification No. 196/87 dated the 5th
May, 1987 but not exceeding two per cent in case of plain gold jewellery and
upto three per cent to ten per cent in case of studded gold jewellery depending
upon the specified value addition as per the Export and Import Policy 1988-91
but for the said practice shall not
be required to be paid in respect of the above said gold loss in the said
period.
|