Capacity based excise duty for re rolling mills: assessed annual capacity drives duty with a monthly lump sum payment option available. Section 3A has been applied to hot re rolled products, requiring annual production capacity for each re rolling mill to be computed by a prescribed formula using measured parameters d, n and i plus deemed values for e, w and hours utilised; manufacturers must declare and have these parameters verified. Duty is fixed on assessed annual capacity with an option under sub rule (3) of rule 96ZP to pay a monthly lump sum equal to one twelfth of (annual capacity x prescribed factor), alternative per tonne payments at clearance, timelines for payment and interest on default. Modvat credit and small scale exemption for re rolled products are withdrawn from the operative date.
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Capacity based excise duty for re rolling mills: assessed annual capacity drives duty with a monthly lump sum payment option available.
Section 3A has been applied to hot re rolled products, requiring annual production capacity for each re rolling mill to be computed by a prescribed formula using measured parameters d, n and i plus deemed values for e, w and hours utilised; manufacturers must declare and have these parameters verified. Duty is fixed on assessed annual capacity with an option under sub rule (3) of rule 96ZP to pay a monthly lump sum equal to one twelfth of (annual capacity x prescribed factor), alternative per tonne payments at clearance, timelines for payment and interest on default. Modvat credit and small scale exemption for re rolled products are withdrawn from the operative date.
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