CUS NTF 18/1998 DATED 1-5-1998
Whereas the notification No. 196/87-Customs, dated 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 the two per cent in the case of handicrafted or machine-made plain gold
jewellery subject to the fulfillment of conditions specified by the Assistant
Commissioner of Customs in this behalf during the period commencing on and from Ist
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 per cent for the plain gold 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, showcause 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 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 28 A 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.
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