Excise duty

In case of Export:-   You will be treated as Merchant Exporter; Excise duty paid by Manufacturer. if you want to export same product, you have to send CT-1 bond and Form H  to manufacturer to avil Excise & CST/VAT exemption respectively for Manufacturer.

In case of Domestic sales:-   Excise duty paid by Manufacturer and he will put Excise & VAT/CST in Invoice which will bear by you.

Relevant Provision in Central Excise Valuation (determination of price of excisable goods) Rules, 2000

RULE 10A: Where the excisable goods are produced or manufactured by a job-worker, on behalf of a person (hereinafter referred to as principal manufacturer), then, -

(i) In a case where the goods are sold by the principal manufacturer for delivery at the time of removal of goods from the factory of job-worker, where the principal manufacturer and the buyer of the goods are not related and the price is the sole consideration for the sale, the value of the excisable goods shall be the transaction value of the said goods sold by the principal manufacturer;

(ii) In a case where the goods are not sold by the principal manufacturer at the time of removal of goods from the factory of the job-worker, but are transferred to some other place from where the said goods are to be sold after their clearance from the factory of job-worker and where the principal manufacturer and buyer of the goods are not related and the price is the sole consideration for the sale, the value of the excisable goods shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of said goods from the factory of job-worker;

Thus in your case you should pay the excise duty on your transaction value (sale value) even though the manufacturing activity is done by the job worker.

Ok thanks for the explanation.

Just one more question what is the rate of % for gold and diamond jewellery, both real and imitation?

I tried looking up on the internet, but the section 14 of the tariff relating to my business area does not have any chapter.

Aso, neither of the schedule show the rate of excise duty on manifacturing of gold and diamond jewellery both real and imitation.

Pls help. Thanks in advance.