9911796707
TMI Blog2012 (9) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... es Company (henceforth referred to as assessee) imported 'Super Enameled Copper Wire' from Sri Lanka and are engaged in manufacturing of 'Super Enameled Copper Wire'. On inspection of the factory premises, the officers of the department felt that the appellants were not undertaking any manufacturing activity and hence they were ineligible for CENVAT Credit taken on the CVD paid on imported copper wire/rod. Coming to this conclusion and after recording various statements, a show cause notice was issued for denial and reversal of the amount of CENVAT Credit availed by the appellant and interest thereon and also proposing the imposition of penalties on the company as well as three individuals. The assessee contested the show cause notice befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that having cleared the final product on payment of duty by utilizing CENVAT credit taken would eventually be reversal of the CENVAT credit, even if assumed that the amount of CENVAT credit was not eligible. 4. Learned A.R., on the other hand, submits that there is no manufacturing activity and the goods have to be used in or in relation to manufacture of final product. It is his submission that it is not correct on record that the goods were used in relation to manufacture of final products. 5. We have considered the submissions made at length by both sides and perused the records. 6. The issue involved in this case is as to whether the appellant has correctly availed the CENVAT credit of the CVD paid on imported copp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the enamel, its electricity etc. After receiving the spool from the machine, they rewind it on the rewinding machine on the other spools, for the purpose of visual inspection of the entire length of the wire and as per the requirement of the length. Since, the Enamelling was a continuous process which goes on 24 Hrs basis and during this period, sometimes process mistakes of various types take place, due to limitations of the technology under use, like sometimes enamel finishes in the tank and some length of conductor goes without insulation till the person fill it up again, voltage fluctuation or electricity goes off, resulting in the variation in the baking/curing and color of the wire, sometimes water tank of the machine get dried and ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asses through an Annealer and goes through enamel tray taking the enamel quotation over it various times (5-12 times depending upon the sizes) in the ovens for the baking of the same. Regarding online testing of enamelled wire, they mean that they draw the sample either at the starting of the spool, end of the spool, or if required in between of the spools for conducting the tests for the proper curing of enamel over the wire and its softness and sizes of conductor and over all diameter after insulation/costing of Enamel/Varnish over the wire. On being asked whether he has agreed with the facts, figures and contents mentioned in the Panchnama dated 17/18-7-2006 and statement dated 18-7-2006; he stated that he was satisfied with the contents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir market/customer, can be sold to their customers as it is." 9. It can be seen from the above reproduced statement of the Power of Attorney holder that the appellant had been carrying out a detailed process, which can be construed as an ancillary or incidental process for manufacturing a final product i.e. 'Super Enameled Copper Wire' or 'Submersible Winding Wires'. The adjudicating authority has not considered this important piece of evidence which was recorded by the officers during visit of the factory premises of the assessee, which in our view clinches the case for the assessee. It can be seen that such detail process, which has been explained by the Power of Attorney holder of the assessee is consonance with the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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