Tribunal grants Cenvat credit for steel wire manufacturing, citing precedents.

The Tribunal allowed the appeal, granting Cenvat credit to the appellants for drawing steel wires from rods, holding that the activity amounts to manufacture. The decision was based on precedents such as PSL Holding Ltd. and Vinayak Industries, and the principle from a Supreme Court case regarding modvat credit. The Tribunal set aside the denial of credit, providing consequential relief to the appellants.

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Issues involved: Denial of Cenvat credit for drawing steel wires from rods as not amounting to manufacture.

Summary:

Issue 1: Denial of Cenvat credit
The Tribunal considered the denial of Cenvat credit to the appellants for the activity of drawing steel wires from rods, on the basis that it does not amount to manufacture. The issue was found to be settled by various decisions, including those of PSL Holding Ltd., Vinayak Industries, and Silvassa Wooden Drums. Reference was also made to the Supreme Court's decision in Commissioner of Central Excise, Vadodara vs. Narmada Chematur Pharmaceuticals Ltd., where modvat credit was held available to the assessee despite the final product being exempted, as the exercise was revenue neutral. The Tribunal applied the ratio of these decisions to the instant case and set aside the impugned order, allowing the appeal and granting consequential relief to the appellants.

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