Jewellers continue stir over excise levy

Govt imposes Section 144 in Zaveri Bazaar to stop traders' rally

Around 25,000 jewellers assembled at Zaveri Bazaar here on Tuesday to demand excise duty rollback, despite the fact that the government had imposed Section 144, which prevents gathering of more than five people at one place.

Earlier in the day, a number of small jewellers had opened their shops after 21 days of strike but they downed shutters after knowing the strike was still on. There was some confusion among jewellers about the status of the strike, especially in the wake of imposition of Section 144.

Read more from our special coverage on "EXCISE DUTY"

• Jewellers to continue strike, despite assurance of no inspector raj

“We unanimously decided to continue our strike till the government rolls back the excise duty fully,” said an India Bullion And Jewellers Association official. Agreeing with this, Lala Ashok Kumar Phophalia, general secretary of Delhi Jewellers Association, said the government had tried to remove procedural obstacles by clarifying over raids, search and seizures but the jewellers' concerns remained unresolved. "We have circulated communications among ourselves (various associations) not to call off strike till excise is fully rolled back.”

The finance ministry had on Monday clarified, “All payments of central excise duty will be applicable since March 1, 2016 based on first sale invoice value. The central excise authorities will not challenge the valuation given in the invoices provided the caratage/purity and weight of the gold/silver with precious stones, and carats of diamond /precious stones are mentioned in the invoices. The department will not conduct any arrest or criminal proceeding.”

The ministry also directed the central excise department not to visit the manufacturing units/shops/place of business /residence of the jewellers. Apart from that, the department would not conduct any search and seizure of stocks. At the same time, the government has ensured that exports should not suffer. The circular says exports of jewellery will be allowed on shelf declaration and submission of legal undertaking to customs without the need to get it ratified by the department.

Despite assurances, jewellers continued their stir, which had started with the Budget announcement by Finance Minister Arun Jaitley about levy of one per cent excise duty on gold jewellery. However, some large jewellers have seen sales continuing through their franchises and counters in big shopping malls and big retails chains. Many jewellers have also reportedly sold jewellery from backdoors to cater to the upcoming marriage season requirements. Large companies, according to reports, have initiated the process to get themselves registered with the excise department.

There were wide expectations that shops will open and imports of gold will begin resulting in to fall in discounts have belied and NCDEX polled gold discount widened from $30 to 33 per ounce today.