RULE 96ZP. Procedure to be followed by the manufacturer of hot re-rolled products

(1) A manufacturer of non-alloy steel hot re-rolled products falling under sub-heading Nos. 7211.11,7211.19,7211.30,7211.52,7211.59,7211.60, 7211.92,7211.99, 7213.90,7214.90, 7215.90,7216.10 and 7216.90 of the Schedule to the Central Excise Tariff Act,1985 (5 of 1986), shall debit an amount calculated at the rate of Rs. 400/-per metric tonne at the time of clearance of hot re-rolled products of non-alloy steel from his factory in the account-current maintained by him under sub-rule (1) of rule 173G of the Central Excise Rules, 1944, subject to the condition that the total amount of duty liability shall be calculated and paid in the following manner :-

I. Total amount of duty liability for the period from the 1st day of September, 1997 to the 31st day of March, 1998

(a) a manufacturer shall pay a total amount calculated at the rate of Rs. 400/ -per metric tonne on capacity of production of his factory for the period from 1st day of 1September , 1997 to the 31st day of March, 1998, as determined under sub-rule (3) of rule 3 of the Hot Re-rolling Mills Annual Capacity Determination Rules, 1997. This amount shall be paid by 31st day of March, 1998;

(b) the amount of duty already paid, together with on-account amount ~aid by the manufacturer, if any, during the period from 1st day of September,1997 to the 31st day of March,1998, shall be adjusted towards the total amount of duty liability payable under clause (a);

(c) if a manufacturer fails to pay the total amount of duty payable under clause (a) by the 31st day of March, 1998, he shall be liable to pay the outstanding amount of duty (that is the amount of duty which has not been paid by the 31st day of March, 1998) along with interest at the rate of eighteen per cent per annum on such outstanding amount calculated for the period from the 1st day of April, 1998 till the date of actual payment of the outstanding amount:

Provided that if the manufacturer fails to pay the total amount of duty payable under clause (a) by the 30th day of April, 1998, he shall also be liable to pay a penalty equal to the outstanding amount of duty as on 30th day of April 1998 or five thousand rupees, whichever is greater.

II. Total amount of duty liability for a financial year subsequent to 1997-98

(a) a manufacturer shall pay a total amount calculated at the rate of Rs. 400/- per metric tonne on the annual capacity of production of his factory as determined under sub-rule (3) of rule 3 of the Hot Re-rolling Mills Annual Capacity Determination Rules 1997. This amount shall be paid by the 31st day of March of the financial year;

(b) the amount of duty already paid, together with on-account amount paid by the manufacturer, if any, during the financial year shall be adjusted towards the total amount of duty liability;

(c) if a manufacturer fails to a the total amount of durable under clause (a) by the 31st day of March, of the relevant financial year, he shall be liable to, -

(i) pay the outstanding amount of duty (that is the amount of duty which has not been paid by the 31st day of March of the relevant financial year) along with interest at the rate of eighteen percent per annum on such outstanding amount, calculated for the period from the 1st day of April, of the immediately succeeding financial year till the date of actual payment of the whole of outstanding amount; and

(ii) a penalty equal to such outstanding amount of duty or five thousand rupees, whichever is greater.

(IA) If any manufacturer removes any of the non-alloy steel hot re-rolled products specified in sub-rule (1) without complying with the requirements of that sub-rule, then all such goods shall be liable to confiscation and the manufacturer shall be liable to a penalty not exceeding three times the value of such goods, or five thousand rupees, whichever is greater.

(2) Where a manufacturer does not produce the hot re-rolled products of non-alloy steel during any continuous period of not less than seven days and wishes to claim abatement under sub-section (3) of section 3A of the Central Excise Act, 1944, the abatement will be allowed by an order passed by the Commissioner of Central Excise of such amount as may be specified in such order, subject to the fulfillment of the following conditions, namely: -

(a) the manufacturer shall inform in writing about the closure to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, either prior to the date of closure or on the date of closure;

(b) the manufacturer shall intimate the reading of the electricity meter to the Assistant Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, immediately after the production in his factory is stopped along with the closing balance of stock of the hot re-rolled products of non-alloy steel;

(c) the manufacturer, when he starts production again, shall inform in writing about the starting of production to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, with a copy to the Supdt. of Central Excise, either prior to the date of starting production or on the date of starting production;

(d) the manufacturer shall on start of production again, along with the closing balance of stock on restarting the factory, intimate the reading of the electricity meter to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, with a copy to the Superintendent of Central Excise;

(e) the manufacturer shall while sending intimation under clause (c), declare that his factory remained closed for a continuous period starting from ______________hours on _________(date) to _________hours on ___________(date).

(3) notwithstanding anything contained elsewhere in these rules, a manufacturer may, in the beginning of each month fro 1st day of September 1997 to the 31st day of March, 1998 or any other financial year, as the case may be and latest by the tenth of each month, pay a sum equivalent t one-twelfth of the amount calculated at the rate of Rs.300 / -multiplied by the annum 1 capacity in metric tonnes, as determined under sub-rule (3) of rule 3 of the H t Re-rolling Mills Annual Capacity Determination Rules, 1997, and the amount so paid shall be deemed to be full and final discharge of his duty liability for the period from the 1st d y of September, 1997 to the 31st day of March, 1998, or any other financial year, the case may be, subject to the condition that the manufacturer shall not avail f the benefit, if any, under the proviso to sub-section (3) or under sub-section (4) f the section 3A of the Central Excise Act, 1944 (1 of 1944) :

Provided that in respect of the non-alloy steel hot re-rolled products, manufactured or produced by a re-rolling mill in which the nominal center distance of the pinions in the pinion stand is up to 160 millimeters, the sum payable under this sub-rule shall be calculated as if for the letters d figures "Rs.300 / -, the letters and figures "Rs.150/-" were substituted:

Provided further that for the month of September, 1997, the manufacturer may pay the amount due for the said month by the 30t of September, 1997

Provided also that if a manufacturer makes a change in the capacity f re- rolling installed in his factory, or there is any change in e total re-rolling capacity installed, he shall pay the amount, calculated prorata:

provided also that where a manufacturer fail to pay the whole f the amount of duty payable for any month by the 10th day of such month, he s 11 be liable to pay, -

(i) the outstanding amount of duty along with interest thereon at the rate of eighteen percent per annum calculated f r the period from the 11th day of such month till the date of actual payment of the outstanding amount; and

(ii) a penalty equal to the amount of duty outstanding from him at the end of such month or five thousand rupees, whichever is greater :

Provided further that if the manufacturer fi1s to pay the total Amount of the duty payable for each of the months from September, 1997 to arch, 1998 by the 30th day of April, 1998, he shall also be liable to pay a penalty equal to the outstanding amount of duty as on the 30th day of April, 1 98 or five thousand rupees, whichever is greater:

Provided also that where a manufacturer has p .d the amount during any month on the basis of provisional determination of annual capacity and subsequently the annual capacity is determined on final basis, the manufacturer shall pay the whole of the differential amount recoverable for e relevant months b the tenth of the month succeeding the month in which the annual capacity is determined on final basis..

(4) In case a manufacturer wishes to avail of discharging his duty liability in terms of sub-rule (3), he shall inform the Commissioner of Central Excise, with a copy to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, in the following proforma:

"We_____________(name of the factory), located at ________________(address) hereby wish to avail of the scheme described in sub-rule 3) of rule 96ZP, for fu 1 and final discharge of our duty liability for the manufacture of hot re-rolled product on non-alloy steel under section 3A of the Central Excise Act, 1944(1 of 1944).

Dated
Sd.

Name and Designation (With Stamp)