It was perhaps a mere coincidence that opposition to a similar attempt to introduce excise duty, this time for both the branded and unbranded sectors, brought together, possibly for the first time, big and small trade associations cutting across states and other boundaries. It sparked off a massive 21-day all-India strike in March and April this year which was definitely the largest ever united action undertaken by jewellers from across the country. This unprecedented show of unity, focus and determination has already produced results, with the Finance Minister announcing the roll back of the excise duty proposal on May 7. Though some of the other issues remain unresolved, the industry has welcomed the FM’s announcement as a major victory brought about by its resolute protests and united action by lakhs of businesses across the country.%% As business returns to normal after never before seen protest marches, dharnas, even rail and rasta rokos, Stephen Rego looks back at the movement that was, and the possibilities it has unfolded of an increasingly united industry marching forward towards a more contemporary and organised tomorrow.%% Like almost all other businessmen in the country, the majority of jewellers were glued to their TV sets on the morning of March 16, 2012 as Finance Minister Pranab Mukherjee rose to present the Union Budget 2012-13.%% For many, there was indeed an air of expectation, since the hitherto unorganised industry had submitted a fairly detailed pre-Budget memorandum to the government outlining a wish list that would fast track them on the path towards modernity (see IJ Feb-March 2012). Would some of their wishes come true? %% Anticipation was indeed high, as just about two weeks earlier the government had acceded to a long standing request from the jeweller community, and clearly spelt out a definition of a ‘brand’, thus making it clear that the majority of jewellers would be excluded from the net of the one per cent excise duty on branded jewellery that had been announced a year ago. With it, the fear of sudden raids by the excise officials checking for duty evasion by anyone whom they considered a ‘branded’ player, as well as the related harassment and other inconveniences, seemed to have now been put behind them.%% The reality turned out to be quite the opposite!%%

By the time the FM had finished his presentation, the ghost of the ‘inspector raj’ that had prevailed during the period of the Gold Control Act which was finally withdrawn in 1991, had returned to haunt the community.%% Two recommendations of the FM were the prime cause of the discomfort – firstly the proposal to bring all types of jewellers, both branded and non-branded, into the excise net, even if at a fairly nominal rate, and secondly, the stipulation that jewellers would have to collect tax at source on every transaction of Rs 2 lakh and above paid for in cash.%% There were other grievances, especially the doubling of the customs duty on gold from two to four per cent that too barely three months after it had been increased from an effective rate of about one per cent to two, but these were clearly of a secondary nature, compared to the excise and tax collection clauses.%% {{The Agitation}} %% By evening, after hectic consultations across the country, the All India Gem & Jewellery Trade Federation (GJF), the apex body of the trade had decided to call for an all-India protest, one that was to assume mammoth proportions in the days to come. %% However, at the outset it began fairly innocuously with an SMS from the GJF asking all its members to participate in a bandh (closure of shops) against the excise duty and other provisions of the budget (see box). Initially it was scheduled to be one day protest, which almost immediately morphed into a three-day strike.%% “The excise duty is a big problem,” Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation (GJF), the body that had spearheaded the protests had stated. “Though we are not against the duty as such the government does not recognise that the nature of jewellery manufacturing is extremely complex, and it involves a large number of artisans who have the skill but are not necessarily literate. There is no way that this excise duty requirement can be implemented.” He also mentioned two more reasons for the opposition – internally there was the possibility of the revival of “inspector raj”, and externally, he said there were countries like China just waiting for something like this to happen so that they could fill the vacuum and gain the upper hand in jewellery manufacture.%% Industry leaders were also upset that the budget announcement virtually overturned an assurance given to them by the government less than two weeks earlier. Ashok Minawala, former chairman and a founder of the GJF explained, “In the 2011 budget, a one per cent duty was imposed supposedly on branded jewellery but with an ambiguity in wording such that the entire industry was brought within the ambit of the levy. We had been fighting for its removal and after one year, only on March 2, we were notified that the rest of the industry was exempt from this duty. But a few weeks later this year’s Budget, once again has introduced the excise duty and the entire industry had fallen within its ambit.”%%

This flip flop angered jewellers to such an extent, that though the GJF had initially given a call for a bandh for three days, the strike snowballed into an indefinite agitation that saw jewellers coming out in the streets in virtually every nook and corner of the country.%% Within a couple of days, the depth of the groundswell of anger that prevailed across the country, became apparent to all subscribers of the GJF’s SMS service who were being inundated by reports from different cities, towns and regions across the country giving detailed updates of the shape the protest had taken in their particular city. %% It may have been a candle light demonstration in Jaipur, a dharna at Kolkata, a delegation to the authorities in Bengaluru, even rail and rasta rokos. After a point it became virtually impossible to keep track of who was doing what and where, and which local association had added its might to the strike. But one thing was clear—the protest was countrywide and the closure of business near total. A few of the larger branded players, for whom the new excise norms actually amounted to a drop in value terms (from one per cent under the previous budget to 0.30 per cent in this one), kept out of the agitation, but many of them also expressed their moral support to the protests.%% {{The Duty}} %% The industry took great pains to explain why the excise duty norms would be virtually impossible to comply with.%% The most common arguments were that non-branded jewellers outsource manufacturing to different artisans, while sourcing raw materials from multiple suppliers. Some of the inputs like diamonds and coloured stones are also not standardised. All this makes maintenance of an excise register cumbersome and tedious, if not impossible. For artisans with low levels of education, who technically could fall within the tax net, the task would have been even more challenging. %% One agitated small jeweller said, “Mass production of uniform goods is different from jewellery manufacture where each piece is different, and besides there are pieces made as per orders, jewellery given by customers for repairs, old goods for melting and refining, polishing etc. How many separate stock registers can a small trader maintain? And if there is any mismatch it can lead to seizure and arrest!” Bamalwa had pointed out that payment of the duty was “as such was not a problem but, compliance was.”%% “The implementation of the excise duty, especially, would have been practically impossible to manage as it is impossible for jewellers to track where a piece of jewellery has been manufactured," Mehul Choksi, CMD Gitanjali Group had argued, while Vijay Jain, CEO, Orra, had said that “Excise compliance norms are very tedious. The proposal had created a lot of pressure on the supply side." %%

{{Feelings Run High}} %% As the strike entered its third week, anger grew and opposition became more vehement than ever. Mounting business losses fuelled the discontent, though jewellers continued to remain steadfast.%% By the tenth day jewellers were estimating that business worth Rs 11,000 crore had been lost, that too during a period that coincided with the peak wedding and festival season. %% Anger boiled over in early April as jewellers moved from staging dharnas to more aggressive forms of protest. Roads were blockaded in Mumbai’s Zaveri Bazaar, and jewellers faced a lathi (baton) charge from the police. In Ghaziabad, near Delhi, jewellers even squatted on the railway tracks and obstructed movement of trains for some time.%% Eventually, business lost during the strike was estimated at Rs 20,000 crore, in addition to Rs 700 crore that had been lost to the exchequer on account of taxes. %% Central Board of Excise and Custom (CBEC) Chairman, S K Goel is reported to have said that in actual terms, the indirect tax department got nearly Rs 100 crore less import duty on gold in April 2012 as compared to last year on account of the strike.%% {{Finding a Solution}}%% While leaders of the GJF and other influential trade associations lobbied with the government, members of some opposition parties, as well as sections of the ruling UPA government began to voice their support for the rollback of excise.%% Leaders like Lalu Prasad Yadav, Mulayam Singh and his son Akhilesh Yadav, Mayawati and Sushma Swaraj were among those who voiced opposition to the FM’s move.%% A jewellers’ delegation met Sonia Gandhi, chairman of the UPA, and the industry bodies even hosted an interaction in Delhi that was attended by a large number of political representatives from across party lines.%% Finally, the FM agreed to meet a delegation of jewellers, and though it was a public holiday celebrating Good Friday and Hanuman Jayanti, North Block was opened for a special closed door meeting that took place between representatives of the trade and Pranab Mukherjee, R. S. Gujral, finance secretary, S.K. Goel, chairman CBEC, Vivek Johri and other senior officers of CBEC and TRU.%%

The jewellery community was represented by GJF, GJEPC, Gujarat Jewellers Association, Ahmedabad Jewellers Association, Bangalore Jewellers Association, Rajkot Jewellers Association, Jaipur Jewellers Association, Maharashtra Rajya Sarafa Association, Rajasthan Jewellers Association, Patiala Jewellers Association, Swarn Shilp Bachao Association (West Bengal), Tamil Nadu Association, Kerala Jewellers Association, UP Sarafa Association, Delhi Jewellers Association, Coimbatore Jewellers Association and others.%% After lengthy discussions during which the representations from the trade were analysed, the FM promised to announce favourable amendments when discussion on the Finance bill resumed in Parliament in early May.%% He also assured the jewellers that he had given clear instructions to all commissioners not to file any cases against any jewellery establishment nor force any jeweller to collect excise or register with the department, and even categorically stated that all notices issued till date would be set aside immediately.%% Following this, GJF in consultation with other associations decided to withdraw all agitations resume normal business. %% While withdrawing the agitation, the trade bodies had made it clear that they would resume the protests should the government not implement its assurances. However, the occasion for this did not arise as a couple of weeks later the FM announced amendments to the Finance Bill, including the complete withdrawal of excise duty in parliament in line with his promises to the delegation.%% {{The Future}} %% While the most pressing issue of excise duty has been resolved satisfactorily, some of the other clauses of the budget that were opposed have not been changed. Many jewellers still question why the jewellery industry has been singled out for tax collection at source, and are understandably wary about the implications this may have in the months ahead.%% But over and above these immediate issues, is the question of whether the coming together of so many different organisations from across the country in a common agitation will help shape a more organised and forward looking approach for the jewellery industry.%% While explaining the perspective on a variety of issues in the pre-Budget memorandum, the GJF chairman had said that the trade body was committed to strengthening the growth of an organised segment in the jewellery industry and had taken a number of initiatives in this regard, such as organising seminars and disseminating knowledge in other ways to the jewellery fraternity across the country.%%

In this same spirit, Bamalwa has appealed to those groups and organisations that participated in the agitation, but are not yet a part of the GJF, to join hands with this apex body and help evolve a perspective for change and growth (see interview with GJF Chairman).%% For an organisation that was born out of the opposition to the imposition of excise duty on branded jewellery about a decade ago, the much broader movement against excise in 2012 has opened out new vistas. %% Can it hasten the process of change and take the jewellery industry forward to become a key player of the India of the 21st century?%%

It was perhaps a mere coincidence that opposition to a similar attempt to introduce excise duty, this time for both the branded and unbranded sectors, brought together, possibly for the first time, big and small trade associations cutting across states and other boundaries. It sparked off a massive 21-day all-India strike in March and April this year which was definitely the largest ever united action undertaken by jewellers from across the country. This unprecedented show of unity, focus and determination has already produced results, with the Finance Minister announcing the roll back of the excise duty proposal on May 7. Though some of the other issues remain unresolved, the industry has welcomed the FM’s announcement as a major victory brought about by its resolute protests and united action by lakhs of businesses across the country.%% As business returns to normal after never before seen protest marches, dharnas, even rail and rasta rokos, Stephen Rego looks back at the movement that was, and the possibilities it has unfolded of an increasingly united industry marching forward towards a more contemporary and organised tomorrow.%% Like almost all other businessmen in the country, the majority of jewellers were glued to their TV sets on the morning of March 16, 2012 as Finance Minister Pranab Mukherjee rose to present the Union Budget 2012-13.%% For many, there was indeed an air of expectation, since the hitherto unorganised industry had submitted a fairly detailed pre-Budget memorandum to the government outlining a wish list that would fast track them on the path towards modernity (see IJ Feb-March 2012). Would some of their wishes come true? %% Anticipation was indeed high, as just about two weeks earlier the government had acceded to a long standing request from the jeweller community, and clearly spelt out a definition of a ‘brand’, thus making it clear that the majority of jewellers would be excluded from the net of the one per cent excise duty on branded jewellery that had been announced a year ago. With it, the fear of sudden raids by the excise officials checking for duty evasion by anyone whom they considered a ‘branded’ player, as well as the related harassment and other inconveniences, seemed to have now been put behind them.%% The reality turned out to be quite the opposite!%%

By the time the FM had finished his presentation, the ghost of the ‘inspector raj’ that had prevailed during the period of the Gold Control Act which was finally withdrawn in 1991, had returned to haunt the community.%% Two recommendations of the FM were the prime cause of the discomfort – firstly the proposal to bring all types of jewellers, both branded and non-branded, into the excise net, even if at a fairly nominal rate, and secondly, the stipulation that jewellers would have to collect tax at source on every transaction of Rs 2 lakh and above paid for in cash.%% There were other grievances, especially the doubling of the customs duty on gold from two to four per cent that too barely three months after it had been increased from an effective rate of about one per cent to two, but these were clearly of a secondary nature, compared to the excise and tax collection clauses.%% {{The Agitation}} %% By evening, after hectic consultations across the country, the All India Gem & Jewellery Trade Federation (GJF), the apex body of the trade had decided to call for an all-India protest, one that was to assume mammoth proportions in the days to come. %% However, at the outset it began fairly innocuously with an SMS from the GJF asking all its members to participate in a bandh (closure of shops) against the excise duty and other provisions of the budget (see box). Initially it was scheduled to be one day protest, which almost immediately morphed into a three-day strike.%% “The excise duty is a big problem,” Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation (GJF), the body that had spearheaded the protests had stated. “Though we are not against the duty as such the government does not recognise that the nature of jewellery manufacturing is extremely complex, and it involves a large number of artisans who have the skill but are not necessarily literate. There is no way that this excise duty requirement can be implemented.” He also mentioned two more reasons for the opposition – internally there was the possibility of the revival of “inspector raj”, and externally, he said there were countries like China just waiting for something like this to happen so that they could fill the vacuum and gain the upper hand in jewellery manufacture.%% Industry leaders were also upset that the budget announcement virtually overturned an assurance given to them by the government less than two weeks earlier. Ashok Minawala, former chairman and a founder of the GJF explained, “In the 2011 budget, a one per cent duty was imposed supposedly on branded jewellery but with an ambiguity in wording such that the entire industry was brought within the ambit of the levy. We had been fighting for its removal and after one year, only on March 2, we were notified that the rest of the industry was exempt from this duty. But a few weeks later this year’s Budget, once again has introduced the excise duty and the entire industry had fallen within its ambit.”%%

This flip flop angered jewellers to such an extent, that though the GJF had initially given a call for a bandh for three days, the strike snowballed into an indefinite agitation that saw jewellers coming out in the streets in virtually every nook and corner of the country.%% Within a couple of days, the depth of the groundswell of anger that prevailed across the country, became apparent to all subscribers of the GJF’s SMS service who were being inundated by reports from different cities, towns and regions across the country giving detailed updates of the shape the protest had taken in their particular city. %% It may have been a candle light demonstration in Jaipur, a dharna at Kolkata, a delegation to the authorities in Bengaluru, even rail and rasta rokos. After a point it became virtually impossible to keep track of who was doing what and where, and which local association had added its might to the strike. But one thing was clear—the protest was countrywide and the closure of business near total. A few of the larger branded players, for whom the new excise norms actually amounted to a drop in value terms (from one per cent under the previous budget to 0.30 per cent in this one), kept out of the agitation, but many of them also expressed their moral support to the protests.%% {{The Duty}} %% The industry took great pains to explain why the excise duty norms would be virtually impossible to comply with.%% The most common arguments were that non-branded jewellers outsource manufacturing to different artisans, while sourcing raw materials from multiple suppliers. Some of the inputs like diamonds and coloured stones are also not standardised. All this makes maintenance of an excise register cumbersome and tedious, if not impossible. For artisans with low levels of education, who technically could fall within the tax net, the task would have been even more challenging. %% One agitated small jeweller said, “Mass production of uniform goods is different from jewellery manufacture where each piece is different, and besides there are pieces made as per orders, jewellery given by customers for repairs, old goods for melting and refining, polishing etc. How many separate stock registers can a small trader maintain? And if there is any mismatch it can lead to seizure and arrest!” Bamalwa had pointed out that payment of the duty was “as such was not a problem but, compliance was.”%% “The implementation of the excise duty, especially, would have been practically impossible to manage as it is impossible for jewellers to track where a piece of jewellery has been manufactured," Mehul Choksi, CMD Gitanjali Group had argued, while Vijay Jain, CEO, Orra, had said that “Excise compliance norms are very tedious. The proposal had created a lot of pressure on the supply side." %%

{{Feelings Run High}} %% As the strike entered its third week, anger grew and opposition became more vehement than ever. Mounting business losses fuelled the discontent, though jewellers continued to remain steadfast.%% By the tenth day jewellers were estimating that business worth Rs 11,000 crore had been lost, that too during a period that coincided with the peak wedding and festival season. %% Anger boiled over in early April as jewellers moved from staging dharnas to more aggressive forms of protest. Roads were blockaded in Mumbai’s Zaveri Bazaar, and jewellers faced a lathi (baton) charge from the police. In Ghaziabad, near Delhi, jewellers even squatted on the railway tracks and obstructed movement of trains for some time.%% Eventually, business lost during the strike was estimated at Rs 20,000 crore, in addition to Rs 700 crore that had been lost to the exchequer on account of taxes. %% Central Board of Excise and Custom (CBEC) Chairman, S K Goel is reported to have said that in actual terms, the indirect tax department got nearly Rs 100 crore less import duty on gold in April 2012 as compared to last year on account of the strike.%% {{Finding a Solution}}%% While leaders of the GJF and other influential trade associations lobbied with the government, members of some opposition parties, as well as sections of the ruling UPA government began to voice their support for the rollback of excise.%% Leaders like Lalu Prasad Yadav, Mulayam Singh and his son Akhilesh Yadav, Mayawati and Sushma Swaraj were among those who voiced opposition to the FM’s move.%% A jewellers’ delegation met Sonia Gandhi, chairman of the UPA, and the industry bodies even hosted an interaction in Delhi that was attended by a large number of political representatives from across party lines.%% Finally, the FM agreed to meet a delegation of jewellers, and though it was a public holiday celebrating Good Friday and Hanuman Jayanti, North Block was opened for a special closed door meeting that took place between representatives of the trade and Pranab Mukherjee, R. S. Gujral, finance secretary, S.K. Goel, chairman CBEC, Vivek Johri and other senior officers of CBEC and TRU.%%

The jewellery community was represented by GJF, GJEPC, Gujarat Jewellers Association, Ahmedabad Jewellers Association, Bangalore Jewellers Association, Rajkot Jewellers Association, Jaipur Jewellers Association, Maharashtra Rajya Sarafa Association, Rajasthan Jewellers Association, Patiala Jewellers Association, Swarn Shilp Bachao Association (West Bengal), Tamil Nadu Association, Kerala Jewellers Association, UP Sarafa Association, Delhi Jewellers Association, Coimbatore Jewellers Association and others.%% After lengthy discussions during which the representations from the trade were analysed, the FM promised to announce favourable amendments when discussion on the Finance bill resumed in Parliament in early May.%% He also assured the jewellers that he had given clear instructions to all commissioners not to file any cases against any jewellery establishment nor force any jeweller to collect excise or register with the department, and even categorically stated that all notices issued till date would be set aside immediately.%% Following this, GJF in consultation with other associations decided to withdraw all agitations resume normal business. %% While withdrawing the agitation, the trade bodies had made it clear that they would resume the protests should the government not implement its assurances. However, the occasion for this did not arise as a couple of weeks later the FM announced amendments to the Finance Bill, including the complete withdrawal of excise duty in parliament in line with his promises to the delegation.%% {{The Future}} %% While the most pressing issue of excise duty has been resolved satisfactorily, some of the other clauses of the budget that were opposed have not been changed. Many jewellers still question why the jewellery industry has been singled out for tax collection at source, and are understandably wary about the implications this may have in the months ahead.%% But over and above these immediate issues, is the question of whether the coming together of so many different organisations from across the country in a common agitation will help shape a more organised and forward looking approach for the jewellery industry.%% While explaining the perspective on a variety of issues in the pre-Budget memorandum, the GJF chairman had said that the trade body was committed to strengthening the growth of an organised segment in the jewellery industry and had taken a number of initiatives in this regard, such as organising seminars and disseminating knowledge in other ways to the jewellery fraternity across the country.%%

In this same spirit, Bamalwa has appealed to those groups and organisations that participated in the agitation, but are not yet a part of the GJF, to join hands with this apex body and help evolve a perspective for change and growth (see interview with GJF Chairman).%% For an organisation that was born out of the opposition to the imposition of excise duty on branded jewellery about a decade ago, the much broader movement against excise in 2012 has opened out new vistas. %% Can it hasten the process of change and take the jewellery industry forward to become a key player of the India of the 21st century?%%

It was perhaps a mere coincidence that opposition to a similar attempt to introduce excise duty, this time for both the branded and unbranded sectors, brought together, possibly for the first time, big and small trade associations cutting across states and other boundaries. It sparked off a massive 21-day all-India strike in March and April this year which was definitely the largest ever united action undertaken by jewellers from across the country. This unprecedented show of unity, focus and determination has already produced results, with the Finance Minister announcing the roll back of the excise duty proposal on May 7. Though some of the other issues remain unresolved, the industry has welcomed the FM’s announcement as a major victory brought about by its resolute protests and united action by lakhs of businesses across the country.%% As business returns to normal after never before seen protest marches, dharnas, even rail and rasta rokos, Stephen Rego looks back at the movement that was, and the possibilities it has unfolded of an increasingly united industry marching forward towards a more contemporary and organised tomorrow.%% Like almost all other businessmen in the country, the majority of jewellers were glued to their TV sets on the morning of March 16, 2012 as Finance Minister Pranab Mukherjee rose to present the Union Budget 2012-13.%% For many, there was indeed an air of expectation, since the hitherto unorganised industry had submitted a fairly detailed pre-Budget memorandum to the government outlining a wish list that would fast track them on the path towards modernity (see IJ Feb-March 2012). Would some of their wishes come true? %% Anticipation was indeed high, as just about two weeks earlier the government had acceded to a long standing request from the jeweller community, and clearly spelt out a definition of a ‘brand’, thus making it clear that the majority of jewellers would be excluded from the net of the one per cent excise duty on branded jewellery that had been announced a year ago. With it, the fear of sudden raids by the excise officials checking for duty evasion by anyone whom they considered a ‘branded’ player, as well as the related harassment and other inconveniences, seemed to have now been put behind them.%% The reality turned out to be quite the opposite!%%

By the time the FM had finished his presentation, the ghost of the ‘inspector raj’ that had prevailed during the period of the Gold Control Act which was finally withdrawn in 1991, had returned to haunt the community.%% Two recommendations of the FM were the prime cause of the discomfort – firstly the proposal to bring all types of jewellers, both branded and non-branded, into the excise net, even if at a fairly nominal rate, and secondly, the stipulation that jewellers would have to collect tax at source on every transaction of Rs 2 lakh and above paid for in cash.%% There were other grievances, especially the doubling of the customs duty on gold from two to four per cent that too barely three months after it had been increased from an effective rate of about one per cent to two, but these were clearly of a secondary nature, compared to the excise and tax collection clauses.%% {{The Agitation}} %% By evening, after hectic consultations across the country, the All India Gem & Jewellery Trade Federation (GJF), the apex body of the trade had decided to call for an all-India protest, one that was to assume mammoth proportions in the days to come. %% However, at the outset it began fairly innocuously with an SMS from the GJF asking all its members to participate in a bandh (closure of shops) against the excise duty and other provisions of the budget (see box). Initially it was scheduled to be one day protest, which almost immediately morphed into a three-day strike.%% “The excise duty is a big problem,” Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation (GJF), the body that had spearheaded the protests had stated. “Though we are not against the duty as such the government does not recognise that the nature of jewellery manufacturing is extremely complex, and it involves a large number of artisans who have the skill but are not necessarily literate. There is no way that this excise duty requirement can be implemented.” He also mentioned two more reasons for the opposition – internally there was the possibility of the revival of “inspector raj”, and externally, he said there were countries like China just waiting for something like this to happen so that they could fill the vacuum and gain the upper hand in jewellery manufacture.%% Industry leaders were also upset that the budget announcement virtually overturned an assurance given to them by the government less than two weeks earlier. Ashok Minawala, former chairman and a founder of the GJF explained, “In the 2011 budget, a one per cent duty was imposed supposedly on branded jewellery but with an ambiguity in wording such that the entire industry was brought within the ambit of the levy. We had been fighting for its removal and after one year, only on March 2, we were notified that the rest of the industry was exempt from this duty. But a few weeks later this year’s Budget, once again has introduced the excise duty and the entire industry had fallen within its ambit.”%%

This flip flop angered jewellers to such an extent, that though the GJF had initially given a call for a bandh for three days, the strike snowballed into an indefinite agitation that saw jewellers coming out in the streets in virtually every nook and corner of the country.%% Within a couple of days, the depth of the groundswell of anger that prevailed across the country, became apparent to all subscribers of the GJF’s SMS service who were being inundated by reports from different cities, towns and regions across the country giving detailed updates of the shape the protest had taken in their particular city. %% It may have been a candle light demonstration in Jaipur, a dharna at Kolkata, a delegation to the authorities in Bengaluru, even rail and rasta rokos. After a point it became virtually impossible to keep track of who was doing what and where, and which local association had added its might to the strike. But one thing was clear—the protest was countrywide and the closure of business near total. A few of the larger branded players, for whom the new excise norms actually amounted to a drop in value terms (from one per cent under the previous budget to 0.30 per cent in this one), kept out of the agitation, but many of them also expressed their moral support to the protests.%% {{The Duty}} %% The industry took great pains to explain why the excise duty norms would be virtually impossible to comply with.%% The most common arguments were that non-branded jewellers outsource manufacturing to different artisans, while sourcing raw materials from multiple suppliers. Some of the inputs like diamonds and coloured stones are also not standardised. All this makes maintenance of an excise register cumbersome and tedious, if not impossible. For artisans with low levels of education, who technically could fall within the tax net, the task would have been even more challenging. %% One agitated small jeweller said, “Mass production of uniform goods is different from jewellery manufacture where each piece is different, and besides there are pieces made as per orders, jewellery given by customers for repairs, old goods for melting and refining, polishing etc. How many separate stock registers can a small trader maintain? And if there is any mismatch it can lead to seizure and arrest!” Bamalwa had pointed out that payment of the duty was “as such was not a problem but, compliance was.”%% “The implementation of the excise duty, especially, would have been practically impossible to manage as it is impossible for jewellers to track where a piece of jewellery has been manufactured," Mehul Choksi, CMD Gitanjali Group had argued, while Vijay Jain, CEO, Orra, had said that “Excise compliance norms are very tedious. The proposal had created a lot of pressure on the supply side." %%

{{Feelings Run High}} %% As the strike entered its third week, anger grew and opposition became more vehement than ever. Mounting business losses fuelled the discontent, though jewellers continued to remain steadfast.%% By the tenth day jewellers were estimating that business worth Rs 11,000 crore had been lost, that too during a period that coincided with the peak wedding and festival season. %% Anger boiled over in early April as jewellers moved from staging dharnas to more aggressive forms of protest. Roads were blockaded in Mumbai’s Zaveri Bazaar, and jewellers faced a lathi (baton) charge from the police. In Ghaziabad, near Delhi, jewellers even squatted on the railway tracks and obstructed movement of trains for some time.%% Eventually, business lost during the strike was estimated at Rs 20,000 crore, in addition to Rs 700 crore that had been lost to the exchequer on account of taxes. %% Central Board of Excise and Custom (CBEC) Chairman, S K Goel is reported to have said that in actual terms, the indirect tax department got nearly Rs 100 crore less import duty on gold in April 2012 as compared to last year on account of the strike.%% {{Finding a Solution}}%% While leaders of the GJF and other influential trade associations lobbied with the government, members of some opposition parties, as well as sections of the ruling UPA government began to voice their support for the rollback of excise.%% Leaders like Lalu Prasad Yadav, Mulayam Singh and his son Akhilesh Yadav, Mayawati and Sushma Swaraj were among those who voiced opposition to the FM’s move.%% A jewellers’ delegation met Sonia Gandhi, chairman of the UPA, and the industry bodies even hosted an interaction in Delhi that was attended by a large number of political representatives from across party lines.%% Finally, the FM agreed to meet a delegation of jewellers, and though it was a public holiday celebrating Good Friday and Hanuman Jayanti, North Block was opened for a special closed door meeting that took place between representatives of the trade and Pranab Mukherjee, R. S. Gujral, finance secretary, S.K. Goel, chairman CBEC, Vivek Johri and other senior officers of CBEC and TRU.%%

The jewellery community was represented by GJF, GJEPC, Gujarat Jewellers Association, Ahmedabad Jewellers Association, Bangalore Jewellers Association, Rajkot Jewellers Association, Jaipur Jewellers Association, Maharashtra Rajya Sarafa Association, Rajasthan Jewellers Association, Patiala Jewellers Association, Swarn Shilp Bachao Association (West Bengal), Tamil Nadu Association, Kerala Jewellers Association, UP Sarafa Association, Delhi Jewellers Association, Coimbatore Jewellers Association and others.%% After lengthy discussions during which the representations from the trade were analysed, the FM promised to announce favourable amendments when discussion on the Finance bill resumed in Parliament in early May.%% He also assured the jewellers that he had given clear instructions to all commissioners not to file any cases against any jewellery establishment nor force any jeweller to collect excise or register with the department, and even categorically stated that all notices issued till date would be set aside immediately.%% Following this, GJF in consultation with other associations decided to withdraw all agitations resume normal business. %% While withdrawing the agitation, the trade bodies had made it clear that they would resume the protests should the government not implement its assurances. However, the occasion for this did not arise as a couple of weeks later the FM announced amendments to the Finance Bill, including the complete withdrawal of excise duty in parliament in line with his promises to the delegation.%% {{The Future}} %% While the most pressing issue of excise duty has been resolved satisfactorily, some of the other clauses of the budget that were opposed have not been changed. Many jewellers still question why the jewellery industry has been singled out for tax collection at source, and are understandably wary about the implications this may have in the months ahead.%% But over and above these immediate issues, is the question of whether the coming together of so many different organisations from across the country in a common agitation will help shape a more organised and forward looking approach for the jewellery industry.%% While explaining the perspective on a variety of issues in the pre-Budget memorandum, the GJF chairman had said that the trade body was committed to strengthening the growth of an organised segment in the jewellery industry and had taken a number of initiatives in this regard, such as organising seminars and disseminating knowledge in other ways to the jewellery fraternity across the country.%%

In this same spirit, Bamalwa has appealed to those groups and organisations that participated in the agitation, but are not yet a part of the GJF, to join hands with this apex body and help evolve a perspective for change and growth (see interview with GJF Chairman).%% For an organisation that was born out of the opposition to the imposition of excise duty on branded jewellery about a decade ago, the much broader movement against excise in 2012 has opened out new vistas. %% Can it hasten the process of change and take the jewellery industry forward to become a key player of the India of the 21st century?%%