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2012 (6) TMI 750 - AT - Central ExciseWaiver of the pre-deposit - Availment of ineligible cenvat credit - Assessee drawing wires from wire rods - Held that:- Board’s circular dated 16.02.01 during the material period was holding that the activity of drawing wire would amount to manufacture cannot be disregarded by the lower authorities and can be said that during the material period appellant was manufacturing the final products. It is a settled law that Board’s circular is binding on the lower authorities and adjudicating authority, in our considered view, has erred in coming to a conclusion that the appellant is not eligible for the cenvat credit of the duty paid on inputs. We also note that the CBEC vide circular dated 29.05.03 has withdrawn the said circular which would leave the period after 29.05.03 in the category of the drawing of wire would not amount to manufacture. We find that by retrospective amendment this was rectified holding that wire drawing units during the period 29.5.03 to 08.7.04 (both days inclusive) it has cleared the final products i.e. drawn wire on payment of duty, at appropriate rate, then the amount paid on such goods shall be allowed as cenvat credit to the recipient of the said drawn wire. The corollary of this retrospective amendment would be that the appellant herein if has discharged the duty liability, then he is eligible to avail the cenvat credit during the material period - Following decision of COLLECTOR OF CENTRAL EXCISE Versus TECHNOWELD INDUSTRIES [2003 (3) TMI 123 - SUPREME COURT OF INDIA] - Decided in favour of assessee.
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