2006 (1) TMI 419 - AT - Central Excise

Summary

Issues involved: Appeal against demand on grounds of shortages in stock weighed on eye estimate and whether drawing wire from wire rods amounts to manufacture.

Regarding demand on shortages in stock: The appeal arose from Order-in-Appeal confirming the demand based on shortages in stock weighed on eye estimate. The appellant argued that drawing wire from wire rods does not constitute manufacture, citing a Supreme Court judgment. The Chartered Accountant referred to Tribunal cases where demands based on eye estimate were set aside. The Tribunal noted that drawing wire from wire rods does not amount to manufacture as per the Apex Court judgment and a Board Circular cited by the Revenue. The Tribunal found the demand of duty unjustified and set aside the order due to lack of physical weighment of stock.

Regarding drawing wire from wire rods: The appellant was engaged in drawing wire from wire rods. The Tribunal referenced the Apex Court judgment and a Board Circular stating that this process does not amount to manufacture. The Tribunal concluded that the demand of duty did not apply in this case. The Revenue's reliance on eye estimate for stock shortages was deemed insufficient, and without physical weighment, the Tribunal ruled in favor of the appellant, setting aside the impugned order and allowing the appeal.