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2013 (7) TMI 212 - CGOVT - Central ExciseRebate of duty paid on wire drawn - Amendment in Rule 16(1) of Central Excise Rules, 2002 – Wire drawn from the wire rods - Vide Circular No. 720/36/2003, dated 29-5-2003, the Central Board of Excise and Customs clarified that the process of drawing wire from wire rods does not amount to manufacture – As per the decision in the case of Technoweld Industries [2003 (3) TMI 123 - SUPREME COURT OF INDIA], the process of drawing wire from wire rod did not amount to manufacture. Held that:- Retrospective amendment in Rule 16 is aimed at facilitating “wire drawing units” which had paid sum equal to the duty leviable on “drawn wire” after availing the credit of duty paid on inputs for the said period. It is aimed at regularizing availment of credits at two stages and payment of an amount representing duty at one stage. The purpose of the amendment is to regularize credit taken at the input stage (on wire-rod), credit taken by the downstream user of “drawn wire” and the amount paid as central excise duty on clearance of drawn wire - amendment made in Rule 16 ibid for the period 29-5-2003 to 8-7-2004 was aimed at facilitating wire drawing units for regularizing availment of Cenvat credits at two stages (i) at the input stage on wire rods (ii) second by the downstream user of drawn wire and the amount paid as Central Excise duty on clearance of drawn wire. Sum paid equal to duty leviable has been treated as duty and shall be allowed as credit to the buyer of drawn wire as per the said amendment. As per Rule 18 of Central Excise Rules, 2002 and Not. No. 19/2004-C.E. (N.T.), dated 6-9-2004, duty paid on exported goods is allowed to be rebated. amount paid is treated as payment of duty by virtue of retrospective amendment in Rule 16, the rebate of the said duty paid is admissible to the applicant. As per CCE, Chandigarh v. Punjab Lighting Aids Pvt. Ltd [2011 (6) TMI 221 - CESTAT, DELHI], amendment in Rule 16 is that units making wire from wire rod were to be treated as the assessee who had received the goods for being “re-made, refined, re-conditioned or for any other reason” under Rule 16(1) and thus he could take Cenvat credit of duty paid on wire rods and the amount paid as duty on the clearances of wires was to be treated as Central Excise duty. Therefore held that applicant is entitled to rebate of duty paid on exported goods in terms of Rule 18 of Central Excise Rules, 2002 read with Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004. Decided in favor of Assessee.
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