Ok try in subcategories template used to show subcats
<ul>
{if $cat eq "rings"}
{foreach from=$allsubcategories item=c}
{if $c.parentid eq "gemstone rings"}
<li>$c.category</li>
{/if}
{/foreach}
{elseif $cat eq "earrings"}
{foreach from=$allsubcategories item=c}
{if $c.parentid eq "gemstone earrings"}
<li>$c.category</li>
{/if}
{/foreach}
{/if}
</ul>
Replace cat names with cat numbers