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2015 (10) TMI 2616 - AT - Central ExciseManufacture - production of PVC insulated winding wires amounts to manufacture or not - Held that: - no manufacture is involved if the wire of higher cross-dimension is drawn into the wire of lesser cross-dimension - in the present case, the final product for which exemption is being claimed is PVC Insulated Winding Wire. The input and the finished products are clearly distinct products and are known in the market as such. It would not require much imagination to show that process of making of PVC Insulated Winding Wire from simple wire is a process resulting in a different product and thus amounting to manufacture. Whether the PVC winding wire should be made from wire exceeding 6 mm cross-sectional diameter? - does it mean that the wire exceeding 6 mm cross-sectional diameter should be in the hands of the appellant themselves - Held that: - even if the wire of cross-dimensional section exceeding 6 mm was not in their hands, it does not mean that the same was not the source of the material out of which PVC wire were made - The exemption on manufacture of PVC Insulated Winding Wire was available only if the input was wire of maximum cross dimensional area exceeding 6 mm of copper. We do not find under the notification any reference to the fact that PVC Winding wire should be made from cross-dimensional area less than 6 mm. This would be a mere presumption and has not been explained by the learned Counsel. Once the conditions of the notification are laid down, we see no reason to deviate from the same. Time bar - Held that: - it is impossible for the Central Excise authorities to know that the assessee was using such wire. It was only after audit was conducted that the true facts came to light. Therefore, there is clear suppression of facts in claiming the benefit of notification wrongly. The extended period in such case is invocable. Whether the plea that the benefit of Modvat credit on the inputs should be given in case the benefit of exemption is denied, is justified? - Held that: - had they not availed the benefit of Nil rate of duty under the exemption, Modvat credit on the inputs would have been available - we allow the benefit of the Modvat credit on the inputs subject to verification by the jurisdictional Assistant Commissioner. There was mis-statement of facts, the mandatory penalty under Section 11AC is imposable. Appeal disposed off - decided partly in favor of appellant.
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