2007 (4) TMI 164 - AT - Central Excise

Cenvat Drawing of wire at suppliers end does not amount to manufacture Retrospective amendment in Rule 16, clearly covers the period under dispute In view of this amendment, credit is entitled on wire

Summary

The Appellate Tribunal CESTAT, Mumbai heard three appeals regarding the denial of Modvat credit on aluminium and copper wire. The issue was whether drawing wire amounts to manufacture. Previous Supreme Court decision and circular supported that drawing wire does not constitute manufacture. However, an amendment declared wire drawing units as assesses retrospectively for June 2003 to July 2004. The tribunal settled the issue in favor of the assessee, allowing Modvat credit on the wires. Impugned orders were set aside, and appeals were allowed.