Cenvat credit on wire drawing inputs upheld where final product was cleared on duty payment.

Cenvat credit on inputs used in wire drawing was held not to be disallowable where the final product had been cleared on payment of appropriate duty during the relevant period. The Tribunal followed its earlier view in Venus Wire Industries and the Board's circular dated 26.7.2006, which recognised regularisation of credits and the effect of the retrospective amendment for wire drawing units. On that basis, the proposed disallowance of credit was found unsustainable, and the Revenue's challenge failed.

---

---

Issues: Whether Cenvat credit taken on inputs used for drawing of wire was disallowable when the final product was cleared on payment of duty during the relevant period.

Analysis: The duty demand related only to credit availed on inputs used in wire drawing. The final product was admittedly cleared on payment of appropriate duty during the relevant period. The Tribunal relied on its earlier view in Venus Wire Industries and on the Board's Circular dated 26.7.2006, which referred to regularisation of credits and retrospective amendment in relation to wire drawing units. On that basis, the disallowance of credit was held to be unsustainable.

Conclusion: Cenvat credit could not be denied in the facts of the case, and the Revenue's challenge failed.

---