Service tax and excise duty issue

Applicability of Excise Duty or Service Tax in case of Trader in Jewellery. The trader is a dealer in Precious metals and stones. He gets the jewellery manufactured by Goldsmiths on job work basis. These articles are sold to the ultimate customer by charging VAT on the value of metal plus stone plus making charges. Issue is relating to the Making charges that are paid to the Goldsmiths on job work basis, whether these are chargeable to Excise duty or Service Tax. Following are additional information relating to Job work: Service Tax:- Notification No. 25/2012 item 30 there is an exemption for Job Work covered under Chapter 71 of the Central Excise Tariff Act There are items under Chapter 71 which has Nil rates also. Under Central Excise in notification no. 12/2012-Central Excise gives exemption to several items including items with Nil rates. Question: 1) Whether the Goldsmith is chargeable to duty or the Trader? 2) In case of exemption can the Nil rate item be considered as Excisable goods or it will remain as Non-Excisable goods? 3) Is there any difference of exemption between manufacture of Branded jewellery and non branded jewellery? 4) Finally whether Excise Duty is applicable or Service Tax is applicable or is it totally exempt. 

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