Application of S. 3.A of the Central Excise Act, 1944 to Re Rolling Mills and Induction Furnaces

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....am directed to refer to the Ministry's letters of even no. dated the 25th July, 1997 (Circular No. 326/42/97-CX) relating to application of section 3A of the Central Excise Act, 1944, to re-rolling mills and letter F.No. B-31/4/97-TRU, dated the 25th July, 1997 (Circular No. 325/41/97-CX) relating to induction furnace units and to say that some changes have been made in these schemes. They are ind....

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....eed mills have been defined on the basis of speed of re-rolling mill, the cut off point being a speed of 8.5 meters per second. (c) the value of 'w' has been modified for diametre size below 200 mm, and three new slabs, namely, "below 100 mm", "100 to below 150 mm." and "150 to below 200 mm". have been introduced. Similarly, in higher category, new slabs of "400 to below 450 mm.", "450 to below ....

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....of ingots or billets in induction furnace units will be charged to duty at a specific rate of Rs. 600 per metric tonne. Notification No. 5097-CE may be seen. It may, however, be observed that these specific rates shall not apply to waste and scrap lying with induction furnace units or re-rolling units as on 1.8.97. Such waste and scrap, if any, will be liable to duty at 15% ad valorem. (g) It ma....

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.... whole of excise duty. Notification No. 49/97-CE refers. (i) For re-rolling mills of nominal diametre below 200 mm., concessional rate of duty has been prescribed. The rate of duty will be Rs. 150 per metric tonne vide first proviso to sub-rule (3) of rule 96ZP. It may also be observed that the stocks of re-rolled products lying with such mills will be allowed to be cleared at a concessional rat....