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<h1>New Guidelines for Hot Re-Rolling Mills on Production Capacity & Excise Duty u/s 3A of Central Excise Act.</h1> The circular addresses the application of Section 3A of the Central Excise Act, 1944, to hot re-rolling mills, detailing the determination of annual production capacity using a specific formula. It mandates re-rollers to declare certain parameters and provides for provisional capacity determination if delays occur. Excise duty rates and payment methods are outlined, including a lump sum option under rule 96ZP. From August 1997, re-rollers lose Modvat credit eligibility and small-scale exemptions. Manufacturers are urged to comply with the scheme, and officials are instructed to facilitate understanding and implementation among stakeholders.