2011 (2) TMI 1087

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....ent Per : Ashok Jindal     Brief facts of the case are as under. 2. The assessees are engaged in the manufacture of precision springs and press pans and are availing CENVAT credit  on the inputs. The major inputs are spring steel wire of non-alloy steel. As per Circular  No. 570/7/2001-CX dated 16.02.2001, it is clarified that drawing of wire from wire rods wou....

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....everse the credit from 29th May, 2003 on the ground that credit on wires drawn from the wire rods was in contravention of Rule 3(1) of CENVAT Credit  Rules, 2002 as it allowed credit only of duty of excise leviable under the Act.  Thereafter, a show-cause notice was issued to the assessee in Appeal No. E/3443/04 for the period June 2003 to March 04 and in Appeal No. E/1409/05 for the per....

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....wing units which had cleared goods on payment of duty on drawn wires. It was further provided that the amount paid as duty would be allowed as CENVAT credit  as if it was duty paid by the assessee who removed the goods. Therefore, in the light of the above amendment, the demands are not sustainable. 4. Heard and considered. 5. We have also examined the Circular No. 831/8/2006-CX dated....

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.... Central Excise Tariff Act, 1985 to declare the said process as amounting to 'manufacture'.  However, as the said Section Note was effective from 9.7.2004, it did not resolve the problem for the said period. 4.4    The retrospective amendment in Rule 16 is aimed at facilitating 'wire drawing units', which had paid a sum equal to the duty leviable on 'drawn wire' after avail....