Noti. no. 1/2011-ce dt 1.3.2011

This query is : Resolved

anckoora (Querist)
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06 January 2012 Dear Sir

We are mfr of Branded Jewellery (71131930 & 71131940). We have crossed limit of 1.5 crores. We are charging 1 % BED and relevant cesses. We also take relevant Cenvat credit of Input Service. We are showing in ER 1, Noti. No. 1/2011-CE dated 1.3.2011 (Sr.No.88).

Now, we have a doubt. 1% Excise is chargeable only if assessee do not take any credit of Input of Raw Material and Input Services. If you are taking cenvat credit, then you cannot charge 1 % BED. Instead, you should charge full rate of BED.
Now, pl. study this and let me know, whether we are correct on charging of 1% ? or we should charge full BED. IF SO, WHAT IS THE FULL RATE OF bed ON THE CHAPTER HEADING MENTIONED ABOVE.

THANKS IN ADVANCE

U S Sharma

U S Sharma (Expert)
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07 January 2012 1. Branded goods can not avail any benefit of value based exemption.

2. when input credit is availed, assessee can not get benefit of notification 01/2011

full rate is payable

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