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2015 (12) TMI 1349 - CESTAT MUMBAI

2015 (12) TMI 1349 - CESTAT MUMBAI - 2016 (335) E.L.T. 494 (Tri. - Mumbai) - Denial of CENVAT Credit - Credit availed on MS wire rods and various chemicals - Held that:- After the judgment of the Apex Court in the case of Technoweld Industries - [2003 (3) TMI 123 - SUPREME COURT OF INDIA], the mere drawl of wire from wire rods does not amount to manufacture. Accordingly, CENVAT Credit availed during the period wherein the activity undertaken by the appellant will not get covered as the activity .....

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he wire. In our view as per the Board’s Circular, the demands raised on the appellant herein is incorrect and the impugned order needs to be set aside - Decided in favour of assessee. - Appeal No. E/2021 to 2023/05 - Final Order Nos. A/3797-3799/2015-WZB/EB - Dated:- 2-11-2015 - Shri M.V. Ravindran, Member (Judicial) And Shri C.J. Mathew, Member (Technical) For the Petitioner : Shri M.H. Patil, Advocate For the Respondent : Shri Ajay Kumar, Jt. Commissioner (AR) ORDER Per: M.V. Ravindran These t .....

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e 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 Government of India by the Taxation Laws (Ame .....

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- 2008 (222) ELT 555 (T). 4. The learned AR reiterates the findings of the lower authorities. 5. On perusal of the records, we find that the issue involved in this case is regarding the ineligible CENVAT Credit availed on MS wire rods and various chemicals which were utilized by the appellant for drawing the wire during period Sept, 02 to March, 04. It is the case of the Revenue that after the judgment of the Apex Court in the case of Technoweld Industries - 2003 (155) ELT 209 (SC), the mere dr .....

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ospective 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 ame .....

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thereby dispensing with the rigours of adjudication procedure. This is an additional facility given to the Trade to settle the dispute at an early stage to reduce litigation and also aid in collection of tax dues more expeditiously. The scheme is optional and not compulsory. The assessee has the further option of using the proposed facility in full or in part. In case of part payment, the remaining amount will be subject to regular proceedings as per the law. 3. Section 35E the Central Excise A .....

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cted different interpretations by the Tribunal and the courts. Hence a corrective measure has been taken to amend section 35E (2) to authorize an authority other than an adjudicating authority to file appeals 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 & .....

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further manufacture. By an amendment in the Budget 2004, Note 10 was inserted in Section XV of the Central Excise Tariff Act, 1985 to declare the said 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. 4.3 Accordingly, Show Cause Notices were issued to wire drawing units for recovery of Cenvat Credit availed on inputs on the grounds that the process of wire drawing did not amount to man .....

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issued vide F. No. 139/3/2004-CX.4 may also be referred to. 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 period. It is aimed at regularizing availment of credits at two stages and payment of an amount representing duty at one stage. The purpose of the amendment is to regularize credit taken at the input sta .....

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