9911796707
TMI BlogApplication of S. 3A of the Central Excise Act, 1944 to Re-Rolling Mills - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity of production of a factory producing re-rolled products are contained in notification No. 25/97-CE (NT), dated 25.7.97. 3. The capacity of production of a hot re-rolling mill is to be determined by applying the formula : Annual Capacity = 1.8885 x 10 -4 x d x n x i x e x w x Number of hours utilized. 4. It may be observed that three parameters, namely, d, n, i are to be determined on physical measurement basis for each factory. The other there parameters namely, e, w and number of utilised hours have been given a deemed value in the rules. Thus, for practical purposes the value (measurement) is required to be ascertained in respect of d, n and i, Once these are known, the application of the formula will give the annual capacit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation of capacity on provisional basis has been made in the rules it may not be used as a matter routine. In fact, it is expected that the entire exercise of determining the capacity of production of re-rolling mills should be completed by the Commissioner of Central Excise in the month of August, 1997 itself. Accordingly, for the month of August, 1997, a special dispensation has been made for the re-rolling mills to pay the duty liability for that month by the end of August, 1997. 9. The manner of payment of excise duty under section 3A is indicated in notification No. 27/97-CE (NT), dated 24.7.97. The provisions of rule 96ZP may be referred to. A rate of duty of Rs. 400 per metric tonne has been prescribed as the rate applicable under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough account current at the time of clearance of goods from his factory. However, by virtue of the fact that section 3A has been invoked for re-rolled products, the total duty liability of the manufacture is based on the capacity of production. Accordingly, the manufacturer shall be legally bound to discharge the total duty liability on this basis. Sub-rule (1) of rule 96ZO may be referred to for details. It may be noted that the manufacturer can pay on account payment at any point of time, in addition to payment of duty at the rate of Rs. 400/- per metric tonne at the time of clearance, so as to ultimately discharge his total duty liability by the end of March, 1998 for the year 1997-98 or by the end of March of subsequent financial years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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