9911796707
TMI Blog2015 (12) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... herein availed CENVAT Credit on the various inputs like, Acid, Zink Chloride, Wire Rods, Zinc, Lead etc. The appellant herein is engaged in drawing of MS Wires falling under Chapter 7217.90. Revenue authorities were of the view that during the material period, the activity of drawing the wires from the rods and wires does not amount to manufacture and hence the CENVAT Credit availed by the appellant seems to be incorrect. Accordingly, a show-cause notice was issued seeking to reverse such CENVAT Credit availed. The adjudicating authority after following the due process of law confirmed the demands raised along with interest and also imposed penalties. 3. Learned Counsel appearing on behalf of the appellant would submit that Central Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (amendment) Rules, 2005 wherein retrospective amendment was introduced to settle this kind of situation. The CBEC vide its Circular dated 26.7.2006 has clarified the issue in respect of the amendment made by the Act. We reproduce the entire circular: - "F.No.201/51/2004-CX-6 Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs 26th July, 2006. Subject: - The Taxation Laws (Amendment) Act, 2006. 1. The Taxation Laws (Amendment) Act, 2006 has come into effect from 13.07.2006. Certain amendments / insertions to section 11A, section11DDA, section 35E, section 37E of the Central Excise Act, 1944 and rule 16 of the Central Excise Rules, 2002 have been effected. 2. Section 11A of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als on behalf of the Commissioner. 4.1 Rule 16 of the Central Excise Rules, 2002 has been retrospectively amended to declare "wire drawing units" as assessees for the period 29.05.2003 to 08.07.2004, hereinafter referred to as the said period. 4.2 The process of drawing of wire from "wire rod" was held as not amounting to 'manufacture' by the Supreme Court in the case of M/s Technoweld Industries [2003-(155)-ELT-0209-SC]. Therefore, the benefit of availment of credit of duty on inputs by the "wire drawing units" was withdrawn on 29.5.2003 by a circular issued by the Board. However, certain wire drawing units continued to pay a sum representing duty, and continued to pass on the credit of amount paid as duty to the ultimate buyer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit taken by the downstream user of "drawn wire" and the amount paid as central excise duty on clearance of drawn wire. In other words, wire drawing units, which had paid a sum equal to duty leviable on drawn wire, would be eligible to avail the credit of duty paid on inputs and utilize the same for payment of duty on drawn wire for the period of amendment. The sum paid by the wire drawing unit in such cases will be treated as duty and shall be allowed as credit to the buyer of drawn wire, in terms of the amendment. This amendment would not create any additional liability on any wire drawing unit which did not pay duty on drawn wire during the period of amendment. 4.5 As the Taxation Laws (Amendment) Bill had been introduced in Parlia ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
