TMI Blog2018 (5) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... be considered as correct. Drawing is a mechanical process and there would be definitely a loss in end cutting/ trimming. Appeal dismissed - decided against Revenue. - Appeal No. E/855/09 - A/85591/2018 - Dated:- 28-2-2018 - MRS. ARCHANA WADHWA, MEMBER (JUDICIAL) And SHRI RAJU, MEMBER (TECHNICAL) Shri H.M. Dixit, Asstt. Commissioner (AR) for appellant Shri D.B. Shroff, Advocate for respondent Per: Raju This appeal has been filed by the Revenue against order of Commissioner dropping the proceedings initiated for demand of reversal of CENVAT Credit and imposition of penalty. 2. Learned AR pointed out that the respondents M/S Bharat Bijlee Ltd. were sending goods for jab-work to M/s KSH International Pvt. Ltd., T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generated and there is no loss or gain in weight while drawing the wires. He also relied on the statement of Shri Rai, who had claimed that on account of insulated paper, there is a gain of around 2 to 8 kg for every 100kgs of bare copper wire, depending on the type of paper used. He argued that as per the rate co for every 100 kgs of copper, the respondents were getting 00 kgs of paper covered insulated copper conductor. He argued that as a result, the loss of 2 to 8% should have been accounted for by the Commissioner. 3. Learned Counsel for the respondent relies on the impugned order. He pointed out that the statement of Rai is not correct. He pointed out that in process of drawing the wire there would be loss in the shape of end cutt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the there would be a gain on account of insulation of paper, His claimed that there is no loss on account of drawing cannot be considered as correct. Drawing is a mechanical process and there would be definitely a loss in end cutting/ trimming. Moreover, Commissioner in his order has dropped the proceedings, on the basis of Tribunal's decision in the case of EMCO Ltd. Vs. Commissioner of Central Excise, Mumbai - 2008 (223) ELT 613 (Tri-Mum). In para 50 and 51 of the order following has been observed by the Commissioner:- 50. This aspect also come up before Hon'ble CESTAT in the case of M/S EMCO Ltd. Vs. Commissioner of Central Excise, Mumbai - 2008 (223) ELT 613 (Tri-Mum). At para 2 Hon'ble CESTAT has observed as - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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