Circular No. 331/47/97-CX
dated 30/8/97
F.No. 314/61/97-TRU
Government of India,
Department of Revenue
Tax Research Unit, New Delhi
Subject:    Application of section 3A of the  Central Excise Act, 1944 to Re-rolling Mills and Induction Furnaces - Reg.

         I am directed to refer to the Ministry's letter No. B-31/7/97- TRU, dated 25.7.97 (Circular No. 326/42/97-CX) relating to application of section 3A of the Central Excise Act, 1944, to re-rolling mills, letter B-31/4/97-TRU (Circular No. 325/41/97-CX), dated 25.7.97, issued relating to induction furnace units and letter B-31/7/97-TRU, dated 1.8.97 (Circular No. 327/43/97-CX), and to say that some changes have been made (in these schemes) as indicated below. Now, section 3A of the Central Excise Act, 1944 in respect of induction furnace units and re-rolling mills would come into force w.e.f. 1.9.97, instead of 1.8.97 as originally intimated. For the goods cleared during the month of August, 1997, duty shall be charged at the rates prescribed in Notification No. 50/97-CE, dated 1.8.97.

2.    Notification Nos. 56/97-CE to 59/97-CE and 43/97- CE(NT) to 45/97-CE(NT), all dated the 30th August, 1997 have been issued to amend Notification Nos. 47/97-CE, 48/97-CE, 30/97-CE(NT), and 31/97-CE(NT), all dated 1.8.97 and Notification No. 24/97-CE(NT), dated 25.7.97. Three Corrigendums dated 30.8.97 have also been issued to make certain corrections of typographical nature in Notification Nos. 51/97-CE & 52/97-CE, both dated 1.8.97 and Notification No. 24/97-CE(NT), dated 25.7.97. Copies of all the above notification alongwith the corrigendums are enclosed herewith.

3.    There is no major change in the basic scheme announced on 25th July, 1997 and 1st August, 1997 in both the cases i.e. for the induction furnace units and the hot re-rolling mills.

4.    The modification made are indication below:-

5.    The modified schemes would come into operation from the 1st September, 1997. The goods manufactured during the month of August, 1997 can be cleared on a lumpsum payment of excise duty as was in the case of goods lying in stock on 31st July, 1997 and cleared subsequently. No Modvat credit, which lapsed on 1.8.97 shall be allowed to be utilised for this purpose.

6.    The instructions contained in Ministry's letters referred to above in this letter may kindly be read in conjunction with the changes which have now been made.

7.    For details, the notifications may kindly be referred to. Necessary action may be taken to implement the schemes. Any difficulty or doubt, error or omission may be brought to the notice of the undersigned urgently.

(P.R. Chandrasekharan)
Director (TRU)