Central Excise - Chapters 72 and 73 - Deemed Credit in respect of Rerollable material - Central Excise - 332/30/87-TRU

Central Excise - Chapters 72 and 73 - Deemed Credit in respect of Rerollable material F. No. 332/30/87-TRU Dated 20-10-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapters 72 and 73 - Deemed Credit in respect of Rerollable material. I am directed to inform you that representations have been received from some of the rerolling units manufacturing goods falling under Chapter 72 or 73 of the Central Excise Tariff and paying an effective rate of duty of Rs. 500 per metric tonne that they are not able to avail of the Modvat credit facility under Rule 57A of the Central Excise Rules because of their inability to produce duty-paying documents in respect of ingots and other rerollable materials used by them as inputs. The representations have since been examined. The Government, having regard to various factors, including (i) fixation of a uniform rate of excise duty of Rs. 365/- per tonne on ingots both in respect of the mini-steel ingots as well as integrated steel plants with effect from 1987, and (ii) prescribing of an excise duty of Rs. 365/- per tonne on goods and materials of iron or steel obtained by breaking up of ships, boats and then floating structures with effect from 27.3.1987, hereby issues the following directions. the second proviso to rule 57G(2) or the Central Excise Rules, 1944. Ingots and rerollable materials of iron or steel purchased outside on or after 1.4.1987 may be deemed to have paid duty at the rate of Rs. 365/- per tonne, and credit of duty in respect of such ingots and rerollable materials used, without undergoing the process of melting, in the manufacture of goods falling under Chapter 72 or 73 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), may be allowed at the rate of 365/- per tonne, without production of documents evidencing payment of duty. It is, therefore, requested that credit of duty under Rule 57A of the Central Excise Rules, 1944, may be granted in terms of the directions given above, to rerollers.