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2016 (11) TMI 508 - AT - Central ExciseClandestine removal of goods - Copper Wire and Super Enamelled Copper Wire - denial of exemption under N/N. 8/2003-CE dated 01.03.2003 - whether drawing of Copper Wire from Thicker Gauge to Thinner Gauge and Varnishing of the same for the purpose of insulations would amount to manufacture or not? - Held that: - the issue is decided by the Hon'ble Supreme Court in the case of Techno Weld Industries referred [2003 (3) TMI 123 - SUPREME COURT OF INDIA]. However Commissioner (Appeals) has distinguished the said judgment on the ground that in the case of Techno Weld it was wire of the Iron and iron-rod whereas in the present case it is Copper Rod and Copper Wire. I do not find any merits with the above distinction made by the Id Appellate Authority. It is the process of drawing of wire which has been held to be a non-manufacturing activity, whether of Iron and Steel or Wire of Copper. The ratio of the law declared by the Supreme Court would be fully applicable in respect of Copper Wire also. In fact the Board vide its Circular No. 720/36/2003 -CX dated 29/5/2003, has withdrawn its earlier Circular No. 570/7/2001 -CX dated 16/2/2001 which held to the contrary. The issue of insulation stand settled by laying down that the same does not amount to manufacture. Varnishing of Copper Wire which lead to Supper Enamelled Copper Wire is for the purposes of increasing the conductivity of the Copper Wire, and the Copper Wire remains Copper Wire only. In the case of Lenzohm Electrical Engg. Co. Pvt. Ltd. Vs. Commissioner of Central Excise, Mumbai-Il [2003 (6) TMI 261 - CESTAT, MUMBAI] it was held that insulating a Copper Wire as not amounting to the manufacture. As much as the activity of the appellant did not amount to the manufacture, the question of availability of small scale notification or otherwise does not arise - appeal allowed - decided in favor of appellant.
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