Compounded Levy Scheme

Presently Compounded Levy Scheme covers ingots and billets of non-alloy steel falling under chapter heading 7206.90 and 7207.90, and also Hot Re-Rolled steel products falling under chapter heading 7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92, 7211.99, 7213.90, 7214.90, 7216.10 and 7216.90

Details regarding calculations of annual capacity of production in respect of Induction Furnace Units and Hot Steel Re-Rolling mills are as under.

HOT RE-ROLLING STEEL MILLS
ANNUAL CAPACITY
DETERMINATION RULES, 1997

M.F.(D.R) NOTIFICATION NO 32/97 (N.T.) AS AMENDED BY 45/97 (N.T.)

In exercise of the powers conferred by sub-section (2) of section 3A of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules, namely :-
1. (1) These rules may be called the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997
(2) They shall come into force on the Ist day of August, 1997.
2. These rules shall apply to non-alloy steel hot re-rolled products falling under sub-heading nos 7211.11, 7 211.19, 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), for determining the annual capacity of production of a factory if such goods are manufactured or produced with the aid of hot re-rolling mill.
3. The annual capacity of production referred to in rule 2 shall be determined in the following manner, namely :-

(1) a hot re-rolling mill shall declare the values of 'd', 'n', 'i', and 'speed of rolling', the parameters referred to in sub-rule (3), to the Commissioner of Central Excise ( herein after referred to as Commissioner), with a copy to the Assistant Commissioner of Central Excise;
(2) on receipt of the information referred to in sub-rule (1), the Commissioner shall take necessary action to verify their correctness and ascertain the correct value of each of the parameters. The Commissioner may, if he so desires, consult any technical authority for this purpose;
(3) the annual capacity of production of hot re-rolled products of non-alloy steel in respect of such factory shall be deemed to be as determined by applying the formula :-

Annual capacity = 1.885 X 10-4 X d X n X i X e X w X Number of utilised hours
(in metric tons)
Where :
d = Nominal centre distance of the pinions in the pinion stand in millimeters
n = Nominal revolutions per minute (RPM) of the drive
i = Reduction ratio of the gear box or or the pulley system or combination thereof
w = Weight in Kilogram per minute of the re - rolled product
the value of 'e' in the formula shall be deemed to be 0.30 in case of low speed mills, and 0.75 in case of high speed mills
the value of factor 'w' in the formula for the high speed mills shall be deemed to be 0.45 and for the low speed mills shall be deemed to be as under :-

Nominal centre distance of the pinions in the pinion stand in millimeters

W in kilogram per meter

Upto 110

0.100

111 to 160

0.15

161 to 210

0.395

211 to 260

0.888

261 to 310

1.200

311 to 360

2.466

361 to 410

4.850

Number of utilised hours shall be deemed to be as under :-

Type

No. of furnaces

Utilised hours per year

Batch

1

1200

Batch

2

1800

Batch

More than 2

2400

Pusher type

1 or more

2400

 

Explanation :- For the purpose of this rule :-

  1. a high speed mill means a mill which produces hor re-rolled products at a high speed or 8.5 meters per second or more and a low speed mill means a mill which produces hot re-rolled products at a speed less than 8.5 meters per second.

  2. nominal centre distance is the pinion centre distance of the pinion stand connecting the last rolling mill drive of the finishing mill excluding any pinch roll. Such pinch roll is not a finishing stand
(4) the Commissioner of the Central Excise shall, as soon as may be, after determining the total capacity of the hot re-rolling mill installed in the factory as also the annual capacity of production, by an order, intimate to the manufacturer.
Provided that the Commissioner may determine the annual capacity of the hot re-rolling unit on provisional basis pending verification of the declaration furnished by the hot re-rolling mills and pass an order accordingly. Thereafter, the Commissioner may determine the annual capacity, as soon as may be and pass an order accordingly.
4. (1) The capacity of production for any part of the year, or any change in the total hot re-rolling mill capacity, shall be calculated pro rata on the basis of the annual capacity of production determined in the above manner stated in rule 3.
(2) In case a manufacturer proposes to make any change in the installed machinery or any part thereof which tends to change the value or either of the parameters 'd', 'n', 'i', 'e', and 'speed of rolling' referred to in sub-rule (3) of rule 3, such manufacturer shall intimate about the proposed change to the Commissioner of Central Excise in writing, with a copy to Assistant Commissioner of Central Excise, at least on month in advance of such proposed change, and shall obtain the written approval of the Commissioner before making such change. Thereafter the Commissioner of Central Excise shall determine the date from which the change in the installed capacity shall be deemed to be effective.

5. In case, the annual capacity determined by the formula in sub-rule (3) or rule 3 in respect of a mill, is less than the actual production of the mill during the financial year 1996 - 97 , then the annual capacity so determined shall be deemed to be equal to the actual production of the mill during the financial year 1996 - 97

INDUCTION FURNACE ANNUAL CAPACITY DETERMINATION RULES, 1997

M.F.(D.R)Notification No. 24/97-C.E. (N.T.), DATED 25-7-1997

In exercise of the powers conferred by sub-section (2) of section 3A of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules, namely:-
1. Short title and commencement.

(1) These rules may be called the Induction Furnace Annual Capacity Determination Rules, 1997.

(2) They shall come into force on the 1st day of August, 1997.

2. These rules shall apply to ingots and billets of non-alloy steel falling under sub-heading Nos. 7207.90 of the Schedule of the Central Excise Tariff Act, 1985 (5 of 1986), for determining the annual capacity of production of a factory if such goods are manufactured n an induction furnace unit.

Explanation :- For removal of doubts it is hereby clarified that these rules also apply to an unduction furnace unit which ordinarily produces castings or stainless steel products.

3. The annual capacity of production referred to in rule 2 shall be determined in the following manner, namely :

(1)The Commissioner of Central Excise (hereinafter referred to as the Commissioner ) shall call for an authenticated copy of the manufacturer's invoice or trader's invoice, who have supplied or installed the furnace or crucible ot the induction furnace unit, and ascertain the total capacity of the furnaces installed in the factory on the basis of such invoice or document:

(2) If the invoice or document referred to in sub-rule (1) is not available for any reason with the manufacturer then the Commissiner shall ascertain the capacity of the furnaces installed in the induction furnace unit on the basis of the capacity of comparable furnaces installed in any other factory in respect of which the manufacturer's invoice or other document indicating the capacity of the furnace is available or, if not so possible, on the basis of any other material as may be relevenat for this pupose. the Commissioner may, if he so desires, consult any technical authority for this purpose;

(3) The annual capacity of production f ingots and billets of non-aloy steel in respect of such factory shall be as determined by applying the following formula:-

ACP = [TCF] X 3200, where-

ACP = Annual Capacity of Production of the factory producing ingots and billets of non-alloy steel in metric tonnes; and

TCF = Total capacity of the furnaces installed in the factory producing ingots and billets of non-alloy steel in metric tonnes.

(4) The Commissioner of Central Excise shall, as soon as may be, after determining, the total capacity of furnaces installed in the factory as also the annual capacity of production by an order intimate to the manufacturer.

4. The capacity of production for any part of the year, or for any change in the total furnace capacity, shall be calculated pro rata on the basis of the anyyyalcapacity of production determined in the above manner. In case a manufacturer shall intimate about the proposed change to the Commissioner of Central Excise in writing, wiht a copy to Assistant Commissioner of Central Excise, at least on month in advance of such proposed change, and shall obtyain the written approval of the Commissioner before making such change. thereafter the Commissioner of Central Excise shall determine the data from which the change in the installed capacity shall be deemed to be effective.

Back                         Top