Application of S. 3A of the Central Excise Act, 1944 to Re-Rolling Mills - reg.

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....n of the annual 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 w....

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....ion may be taken to verify the correctness of this declaration. If necessary, the Commissioner of Central Excise may take the help of any technical person in this regard. 8. In case there is likely to be any delay in determining the capacity of production it may be determined on a provisional basis. However, though provision for determination 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....

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....Rs. 3.6 lakhs by the 10th of each month subsequent of August, 97. 12. A manufacturer wishing to avail of sub-rule (3) is required to exercise the option in the proforma prescribed under sub-rule (4). 13. If a manufacturer does not wish to avail of sub-rule (3) of 96ZP, such manufacturer is required to pay excise duty at the rate of Rs. 400/- per metric tonne through 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 rul....