Budget 2013: AIIFA proposes deemed credit of duty on steel scrap for availing CENVAT credit

NEW DELHI: The All India Induction Furnaces Association ( AIIFA) has proposed deemed credit of duty on steel scrap for availing CENVAT credit for consideration in Budget 2013.

In a statement, AIIFA said, considering the high potential of the secondary steel sector for the overall growth of the domestic steel industry as well as for economic development of the country, the secondary steel sector particularly Induction Melting Furnace units for its survival request Govt. of India for considering deemed duty paid on steel scrap for availing CENVAT credit.

AIIFA suggested that details of deemed credit can be worked out in consultation with the industry to avoid its misuse. "By allowing Deemed Duty Credit on steel scrap the revenue collection by the Govt. of India will enhance remarkably," AIIFA noted.

AIIFA further added that the Central Government has earlier allowed the Deemed Credits on the Base Metals and Articles thereof falling under Chapters 72, 73, 74, 76, 78 and 79 of the said Schedule as per the following Orders issued by the Central Board of Excise and Customs, and the rates of the deemed credit which was allowed, were also revised from time to time.