Iron and steel - Goods notified for purposes of credit of duty under Modvat - 58/97 - Central Excise - Tariff

Iron and steel - Goods notified for purposes of credit of duty under Modvat

Notification No. 58/97-C.E.

Dated 30-8-1997

In exercise of the powers conferred by sub-rule (6) of rule 57A of the Central Excise Rules, 1944, the Central Government hereby declares the following inputs and the final products falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) namely :-

No.	Inputs	Final products
(1)	(2)	(3)
1	Hot re-rolled products of non-alloy steel falling under sub-headings Nos. 7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92, 7211.99, 7213.90, 7214.90, 7215.90, 7216.10 and 7216.90 of the said Schedule and on which duty of excise has been paid under section 3A of the Central Excise Act, 1944 (1 of 1944)	All goods falling within the said Schedule.

2. The Central Government further declares that the duty of excise under the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as said Act), shall be deemed to have been paid (hereinafter referred to as deemed duty), on the inputs declared herein and the same shall be equivalent to the amount calculated at the rate of twelve per cent of the price, as declared by the manufacturer, in the invoice accompanying the said inputs (hereinafter referred to as invoice price), and credit of the deemed duty so determined shall be allowed to the manufacturer of the final products.

3. The credit of deemed duty allowed in respect of the said inputs shall be utilised only towards payment of duty of excise leviable under the said Central Excise Act on the said final products :

Provided that the credit of deemed duty in respect of inputs cleared for export under bond shall be allowed to be utilised towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible by refund to the manufacturer subject to such safeguards, conditions and limitations as may be specified by the Central Government in the Official Gazette.

Provided further that no such refund of credit of deemed duty shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties (Drawback) Rules, 1971, or claims rebate of duty under rule 12 in respect of such duty.

4. The provisions of this notification shall apply to only those inputs which have been received directly by the manufacturer of the final products from the factory of the manufacturer of the said inputs under the cover of an invoice declaring that the appropriate duty of excise has been paid on such inputs under the provisions of section 3A of the said Act.

5. The provisions of this notification shall not apply to inputs where the manufacturer of the said inputs has not declared the invoice price of the said inputs correctly in the documents issued at the time of their clearance from his factory.

6. This notification shall come into effect on and from the 1st day of September, 1997.

Explanation. - For the purpose of this notification, "invoice price" means the price charged by the manufacturer of inputs and indicated in the invoice accompanying the said inputs, the payment for which is made directly by the manufacturer of the final products to the manufacturer of the said inputs by cheque drawn on his own bank account.