2016 (10) TMI 1162

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....iabad. 2. The issue in this appeal is whether the appellant procuring duty paid Black Wire and subjecting it to process of galvanization & clear the same, does it amount to manufacture. 3. The appellant purchases requires duty paid Drawn Black Wire/Wire rods and take Cenvat credit on the same being common input and, thereafter, undertakes mainly the following three processes :- (a)     some quantity of wires are drawn and cleared as Black Wire on payment of appropriate Excise duty, (b)     some quantity of input black wire, the process of galvanization followed by drawing the wires into a lower gauge is carried out and the same is cleared out as drawn G.I. Wire on payment of appropriate ....

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....ation of Black Wire). It further appeared to Revenue that the appellant have taken Cenvat credit on entire quantity of inputs, namely Black Wire and Zinc and used the same for the manufacture of dutiable as well as for goods subjected to only process of galvanization. The appellant have wrongly taken credit of the duty paid on Black Wire and Zinc used in the process of galvanization, should have been reversed at the time of clearances. But, the appellant reversed only prescribed percentage of amount under Rule 6(3)(b) of CCR, 2004. Further, the appellant had taken Cenvat credit of Education Cess on Black Wire and Zinc but no amount of Education Cess has been reversed. Thus, a case of short reversal of duty is made out and, accordingly, the ....

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....in the show cause notice that galvanization amounts to manufacture. Merely, because there is a separate Tariff entry with effect from 1 March, 2005, it cannot be said that black wire galvanization have become dutiable. Relying on the ruling of the Apex Court in CCE v. Technoweld Industries reported in 2003 (155) E.L.T. 209 (S.C.), where it is held that in absence of any manufacture, the product does not become excisable merely, because there is a separate tariff entry. Reliance was also placed on the ruling of this Tribunal in the case of Geekay Wires Pvt. Ltd. v. CCE reported at 2007 (80) RLT 396 = 2007 (213) E.L.T. 224 (Tribunal), wherein it was held that conversion of galvanized standard wires out of G.I. Wires does not amount to manufac....