Branded jewellery - Board not happy with disobedient Commissioners
“Expensive and premium jewellery is now manufactured and sold under alluring brand names. On such branded jewellery I propose to levy an excise duty of 2%”, declared the Finance Minister in his budget speech and the gold rush started for the Department. Within hours of the FM’s budget speech, excise sleuths descended on gold shops to do stock taking. The agitated traders pulled down shutters and closed business. Within three days on 4.3.2005, Board came up with a clarification that every sign or mark is not a brand name. The Board circular stated that there had been some misgivings in the trade and to alley the apprehensions, Board had issued the clarification. It is obvious that the misgivings was not with the trade but with the department in spite of abundant clarity in the law and the Board circulars, Commissioners were causing confusion.
Following Board instructions in the best of times had never been a favourite pastime of the Commissioners.
Board has now issued a fresh letter stating that board has taken a serious view of the action of some Commissioners in not giving effect to the Board circular. What happens if the Board takes a serious view? Board has been consistently taking a serious view or rather communicating they are taking a serious view whenever Commissioners choose to ignore the Board's directions. Apparently Commissioners will continue to ignore Board directions and Board will continue to take a serious view. Of course in the mean time some gold may get seized, some people may go to jail and some lawyers may make money thanks to the rank disobedience.
In order to avoid further harassment to the jewellery industry, the Board wants the following:
1) If a Commissioner is in doubt whether a particular jewellery is branded or not the matter should be referred to the Board.
2) The reference to the Board should be made through the Chief Commissioners explaining why it should be treated as branded jewellery.
3) The Chief Commissioners should forward the reference with his comments to the Member (Central Excise).
4) Till the Board decides on the matter, no action should be taken against the jeweller.
May be foreseeing unwanted correspondence from the Commissioners, Board has also directed that where the jeweller agreess that his product is branded or where the Commissioner agrees that it is not branded, no reference need be made to the Board.
Happy New Year to the jewellers, thanks to the board, but subject to the approval by the Commissioners.
F.No.354/203/2005-TRU, Dated : December 29, 2005