Compounded levy --- Re-rolling mills and induction furnaces – withdrawal of scheme – CENVAT on ad-valorem basis

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....acity of production under section 3A of the Central Excise Act,1944, in respect of hot steel re-rolling mills and induction furnace units is being discontinued w.e.f. 1st April, 2000. Accordingly, notification No.24/97 (NT), dated 25 July, 30/97(NT), 31/97(NT), 32/97(NT), 47/97, 48/97, 50/97, 58/97,all dated 1st August, 1997, are being rescinded w.e.f. 1st April, 2000. 2. From 1st April,2000, onw....

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....aid and such stocks shall not be required to suffer any further ad-valorem duty when they are cleared from the re- rolling mills or induction furnace units on or after the 1st day of April, 2000. The re-rolling mills and induction furnace units may also be advised to indicate on the invoices, when such stock is cleared, that the duty thereon was paid under section 3A of the Central Excise Act, 194....

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....bed under the CENVAT rules. 5. A question has been raised as to whether the re-rolling mills and induction furnace units would be eligible to take credit of the duty paid on capital goods received in the factories during the period 1.9.1997 till 31.3.2000. In this context it is clarified that no such credit is admissible in respect of such capital goods. 6. The re-rolling mills and induction fur....