2016 (3) TMI 775

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..... M.R.Sharma, DR ORDER PER: SULEKHA BEEVI C.S. The appeal is filed challenging the disallowance of Cenvat Credit on bright bars used as inputs for manufacture of motor vehicles parts. 2. The appellants are engaged in the manufacture of goods falling under chapter heading 7318.10 of the First Schedule to the CETA, 1985. They were also availing credit in respect of duty paid on inputs. It was ob .....

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..... rods/rounds. The short question involved is whether the appellants are entitled to credit on the duty paid on bright bars used as inputs. According to the department, the manufacturer who supplied the bright bars was not liable to pay duty on these items as no process of manufacture was involved in the transformation of bright bars from round bars and therefore the appellants cannot avail credit .....

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..... rocess of making bright bars from wire rods amounts to manufacture. Duty was being collected upon bright bars and credit was being availed on such goods. A further trade notice dated 16/06/2004 was issued in clarification to trade notice No. 18/2003. It is discussed by the Commissioner (Appeals) that the issue was contentious and involved interpretation and therefore protective demands were issued .....

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