Authority for Advance Ruling —– Taxability on Jewellery fitted with Watch – The applicant purchases gold, diamond, precious stones (Ruby, Emerald, Sapphire, etc.) pearls and watch. Thereafter, these are handed over to job worker who is a specialized job worker for making jewellery and carrying out such work. The cost of the jewellery includes cost of Gold, Silver, Diamond, etc. of very high value but a wrist watch is fitted in the jewellery selected by customer. The cost of wrist watch is very nominal i.e. not even 1% of total value and customer’s intention is to buy jewellery only. The applicant sought an advance ruling for classification of goods. The applicant referred to Chapter Heading 7113 and submitted that the rate of tax applicable would be 1.5% CGST + 1.5% SGST.
Held that:- The Hon’ble Authority for Advance Ruling ruled out that the product Marigold Butterfly Bridal with Watch and similar jewellery products containing watch supplied by the applicant are classifiable under Heading 9101.—House of Marigold, In Re… [2018] 05 TAXLOK.COM 106 (AAR-Gujarat)