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2006 (8) TMI 484 - AT - Central Excise
Issues:
Eligibility of credit of duty paid on Stainless Steel Wires under Rule 16 of Central Excise Rules for the period from June 2003 to November 2003. Analysis: The case pertains to the eligibility of credit of duty paid on Stainless Steel Wires under Rule 16 of the Central Excise Rules for the period from June 2003 to November 2003. The advocate for the appellant highlighted the retrospective amendment of Rule 16 by Section 39 of the Taxation Laws (Amendment) Act, 2006, which received Presidential assent on 13-7-2006. The amendment aimed at regularizing credit taken at the input stage, credit taken by downstream users of "drawn wire," and the amount paid as central excise duty on clearance of drawn wire. The purpose was to allow wire drawing units, which had paid duty on drawn wire, to avail credit of duty paid on inputs and utilize it for payment of duty on drawn wire during the period of the amendment. This amendment did not impose any additional liability on wire drawing units that did not pay duty on drawn wire during the amendment period. The Tribunal considered the recent amendment to Rule 16 and the clarification provided in the Board's Circular dated 26-7-2006. It was established that the duty paid by the wire drawing unit needed to be allowed as credit to the buyers of wires, including the appellants. Consequently, the impugned order was set aside, and the appeal was allowed, granting consequential benefit to the appellants. The Tribunal waived the requirement of pre-deposit and proceeded with the appeal hearing with the consent of both parties. The advocate for the appellant emphasized the significance of the retrospective amendment in resolving the dispute regarding the eligibility of credit of duty paid on Stainless Steel Wires. The Tribunal's decision was based on the clarity provided by the recent amendment and the Board's Circular, ensuring that the amount of duty paid by the wire drawing unit was rightfully allowed as credit to the buyers of wires.
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