Win for Kalyan Jewellers: CESTAT rules Non-Studded Silver Articles Classifiable as 'Articles of Jewellery' with Nil Duty [Read Order]
CESTAT ruled in favor of Kalyan Jewellers, holding that non-studded silver articles qualify as 'Articles of Jewellery' under CETH 7113 and are eligible for nil excise duty
![Win for Kalyan Jewellers: CESTAT rules Non-Studded Silver Articles Classifiable as Articles of Jewellery with Nil Duty [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Kalyan-Jewellers-Win-for-Kalyan-Jewellers-CESTAT-CESTAT-Rules-Non-Studded-Silver-Articles-Articles-of-Jewellery-taxscan.jpg "Win for Kalyan Jewellers: CESTAT rules Non-Studded Silver Articles Classifiable as Articles of Jewellery with Nil Duty [Read Order]")
The Bangalore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that non-studded silver articles manufactured by Kalyan Jewellers are classifiable under ‘Articles of Jewellery’ (CETH 7113) and are eligible for a nil rate of excise duty, provided the exemption conditions are satisfied. Kalyan Jewellers India Pvt. Ltd., the appellant, is engaged in...
The Bangalore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that non-studded silver articles manufactured by Kalyan Jewellers are classifiable under ‘Articles of Jewellery’ (CETH 7113) and are eligible for a nil rate of excise duty, provided the exemption conditions are satisfied.
Kalyan Jewellers India Pvt. Ltd., the appellant, is engaged in the manufacture and sale of gold, diamond, and silver jewellery. The case arose out of an Order-in-Original dated June 23, 2023, passed by the Commissioner of Central Tax and Excise, Kochi, confirming a substantial central excise duty demand along with interest and penalties.
The dispute was related to excise liability on silver jewellery, classification of goods, eligibility for exemption under various notifications, export-related compliance, treatment of hedging activity, and denial of certain CENVAT credits.
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The department alleged that the appellant had wrongly classified certain silver items as jewellery under CETH 7113, when in fact they were articles of silverware covered under CETH 7114 and subject to a 12.5% duty. The department further alleged that the appellant had failed to fulfill the conditions attached to the exemption notifications, including the prohibition on availing CENVAT credit.
The appellant’s counsel argued that the classification dispute was interpretational and not driven by any intent to evade duty, and all transactions were properly accounted for in audited records. The appellant’s counsel argued that it had sold only non-studded silver jewellery eligible for nil duty under Notification No. 12/2012-CE (as amended), and had duly reversed proportionate CENVAT credit after the introduction of stricter conditions in Notification No. 6/2017-CE.
The two-member bench comprising P.A. Augustian (Judicial Member) and Pullela Nageswara Rao (Technical Member) observed that the classification under CETH 7113 was correct as there was no evidence that the goods were studded with diamonds or other precious stones.
The tribunal also accepted the appellant’s claim that CENVAT credit was reversed wherever required and that export documentation was sufficient. The impugned order was set aside, and the appeal was allowed with consequential relief to the appellant.
To Read the full text of the Order CLICK HERE
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