9911796707
TMI Blog2011 (2) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... Brief facts of the case are as under. 2. The assessees are engaged in the manufacture of precision springs and press pans and are availing CENVAT credit on the inputs. The major inputs are spring steel wire of non-alloy steel. As per Circular No. 570/7/2001-CX dated 16.02.2001, it is clarified that drawing of wire from wire rods would amount to manufacture. On 29th May ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ground that credit on wires drawn from the wire rods was in contravention of Rule 3(1) of CENVAT Credit Rules, 2002 as it allowed credit only of duty of excise leviable under the Act. Thereafter, a show-cause notice was issued to the assessee in Appeal No. E/3443/04 for the period June 2003 to March 04 and in Appeal No. E/1409/05 for the period October 2003 to July 2004 and in Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty on drawn wires. It was further provided that the amount paid as duty would be allowed as CENVAT credit as if it was duty paid by the assessee who removed the goods. Therefore, in the light of the above amendment, the demands are not sustainable. 4. Heard and considered. 5. We have also examined the Circular No. 831/8/2006-CX dated 26th July, 2006. Paragraphs 4.2 and 4.4 of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d process as amounting to 'manufacture'. However, as the said Section Note was effective from 9.7.2004, it did not resolve the problem for the said period. 4.4 The retrospective amendment in Rule 16 is aimed at facilitating 'wire drawing units', which had paid a sum equal to the duty leviable on 'drawn wire' after availing the credit of duty paid on inputs for the said pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additional liability on any wire drawing unit which did not pay duty on drawn wire during the period of amendment." 6. In view of the above said Circular, we find that the issue is no more res integra and accordingly, the demands are not sustainable in the light of the above said Circular. Hence the impugned orders are set aside. The appeals filed by the Party in Appeals No. E/3443/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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