2017 (5) TMI 1129

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....se are that both the respondents M/s Himachal Wire Indus. (P) Ltd. and M/s Brijsons Heatreat are engaged in the manufacture of Steel Wires, Barbed Wire and Galvanized Wire falling under Chapter 72 & 73 of the Central Excise Tariff. The respondents have been availing the Cenvat Credit of duty paid on the inputs used in or in relation to the manufacture of their final product.  Being located in the state of H.P., the respondents expanded their installed capacity to the extent of 25% and opted for Notification No. 50/2003-CE dt. 10.1.2003 w.e.f. 30.10.2004.  They continued to work under cenvat scheme.  However, after opting for Notification 50/2003-CE, they were directed not to take any cenvat credit since the clearances effecte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Tariff manufactured by the respondents are neither exempted under any notification nor attract nil rate of duty in tariff and accordingly allowed their appeals. Aggrieved by the order of Commissioner (Appeals), the Revenue has filed this appeal. 3.   Ld. A.R. appearing for the Revenue submits that in terms of Rule 6 of Cenvat Credit Rules, cenvat credit is not allowed on such quantity of inputs, which are used in the manufacture of exempted goods. Since the respondents have opted for area based exemption w.e.f. 30.01.2004, they are not entitled to take cenvat credit of inputs received thereafter.  He argued that cenvat credit scheme was intended to prevent cascading effect of excise duty. When no duty leviable on the final p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o one co-relation and when final product is not specifically exempted, the cenvat credit cannot be inadmissible. 5.   Heard both the parties and perused the records. 6.1   After hearing both the parties and examining the records, we find that the basic issue to be determined is whether the goods manufactured by the respondents are exempted or not. We also find that the reasoning in the impugned order of Commissioner (Appeals) in allowing the appeals does not appear to be correct reading of the law. Commissioner (Appeals) has taken the argument that since there is no specific exemption to the GI wires falling under chapter 72 and 73, the final product is not exempted and clearances of specified units are not require to ....