9911796707
TMI Blog2013 (9) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Central Excise Tariff Act, 1985. During the period from 25.07.2003 to 30.04.2004 under proper invoices the appellant had availed CENVAT credit on Steel wires to the tune of Rs. 8,86,393/- which is used as input for manufacture of ACSR conductors. As per the decision of Hon'ble Supreme Court in the case of (i) M/s Vishwaman Industries, (ii) M/s Hind Enterprises, and (iii) M/s Technoweld Industries, the drawing of wire from wire rods does not amount to manufacture and the same was also clarified vide the Boards Circular No. 720/36/2003-CX, dated 29.05.2003 that the process of drawing of wires from wire rods does not amount to manufacture under section 2(f) of Central Excise Act, 1944. As such the Steel wires manufactured from wire rods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods. The adjudicating authority has observed that the appellant has contravened the provisions of rule 3 of Cenvat Credit Rules, 2002, which allow a manufacturer of final products to avail credit of the duty of excise specified in the First Schedule to the Tariff Act and is leviable under Central Excise Act, 1944 whereas the appellant had taken credit of duty which was not leviable on the impugned goods in view of abovesaid order of Hon'ble Supreme Court. I further find that the appellant has correctly received Steel wires and there is no dispute about their being inputs for the manufacture of ACSR Conductors in the appellants factory. The manufacturing activity being conducted at the appellants factory and the excisability of the ACSR Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such, the respondent should not have paid duty and should not have taken credit. However, we note that the various decisions relied upon by the Commissioner (Appeals) have settled the legal issue laying down that by utilizing the Modvat Credit for payment of duty on the final product, when no duty was required to be paid, an assessee can said to have reversed the credit. As such, further reversal is not called far. 5. We further note that sub Rule (3) of Rule 16 of Central Excise Rules 2002, has been inserted by the Taxation Law (amendment) Act, 2006 effective from 13.7.2006,which reads as under:- Provided that for the proposes of this rule, assesse shall include wire drawing units, which has cleared the goods on payment of an amount equa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
