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TMI Blog2016 (12) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... nt procuring duty paid Black Wire and subjecting it to process of galvanization & clear the same, does it amount to manufacture. 3. The appellant purchases requires duty paid Drawn Black Wire/Wire rods and take Cenvat credit on the same being common input and, thereafter, undertakes mainly the following three processes: - (a) some quantity of Wires are drawn and cleared as Black Wire on payment of appropriate Excise duty, (b) some quantity of input black wire, the process of galvanization followed by drawing the wires into a lower gauge is carried out and the same is cleared out as drawn G.I. Wire on payment of appropriate Excise duty, (c) On the remaining quantity of black wire, the same is galvanized and cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of inputs, namely Black Wire and Zinc and used the same for the manufacture of dutiable as well as for goods subjected to only process of galvanization. The appellant have wrongly taken credit of the duty paid on Black Wire and Zinc used in the process of galvanization, should have been reversed at the time of clearances. But, the appellant reversed only prescribed percentage of amount under rule 6(3)(b) of CCR, 2004. Further, the appellant had taken Cenvat Credit of Education Cess on Black Wire and Zinc but no amount of Education Cess has been reversed. Thus, a case of short reversal of duty is made out and, accordingly, the SCN proposed to recover Cenvat Credit amounting to Rs. 35,91,092/- including Education Cess short reversed during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Tariff entry with effect from 01 March, 2005, it cannot be said that black Wire galvanization have become dutiable. Relying on the ruling of the Apex Court in CCE Vs. Technoweld Industries reported in 2003 (155) ELT 209(SC), where it is held that in absence of any manufacture, the product does not become excisable merely, because there is a separate tariff entry. Reliance was also placed on the ruling of this Tribunal in the case of Geekay Wires Pvt. Ltd Vs. CCE reported at 2007 (80) RLT 396, wherein it was held that conversion of galvanized standard wires out of G.I. Wires does not amount to manufacture. The learned counsel also urges that the show cause notice is misconceived and bad and it ignores the CBEC Circular No.19/19/94-CX whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered the rival contentions, we take notice that prior to 01.03.2005, both plated or coated wire with zinc and un-plated wire were listed in heading 7217 and subsequent to March 01, 2005 under the 8 digit Tariff, Black wire was listed under heading 72171010 and G.I. Wire under heading 72172010. We hold that process of galvanization simplicitor does not amount to manufacture and accordingly the whole show cause is misconceived, demanding Central Excise duty from the appellant. Further, we hold that the appellant have rightly paid duty by reversal of credit under the provisions of Rule 6(3)(b) of Cenvat Credit Rules, 2004. We also hold that the show cause notice is misconceived as it ignores the CBEC Circular, wherein it has been said th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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