Budget 2013: AIIFA requests for industry-friendly and clear cut definition of re-rollable scrap

NEW DELHI: The All India Induction Furnaces Association (AIFFA) has requested that Budget 2013 should provide a clear cut definition for re-rollable scrap in consultation with the industry. AIIFA alleged that as the industry is dependant on import of Heavy Melting Scrap (HMS) its members are being harassed on the pretext that the material is re-usable/re-rollable and it is so because there is no definition of re-rollable scrap in the excise/customs tariff which could help in differentiation of melting scrap from re-rollable scrap.

AIIFA said, "actual user should be exempted from the payment of 4% Additional Custom Duties ( SAD- special additional duty) as Central Excise Duty is 12% whereas we pay CVD + ACD = 16% approximately and thus we are left with unused CENVAT Credit as we have to pay cash duty under PLA to satisfy the local Excise Authorities revenue concerns."

"Moreover there is additional Cenvat credit on account of Service Tax on Inland Haulage charges and other import related services thus adding to unutilized Amount in the Cenvat account and This is all the more important because trader gets refund of this ACD whereas the manufacturer's funds are blocked in unused CENVAT credit," it added.