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TMI Blog2014 (1) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to ‘manufacture’. However, as the said Section Note was effective from 9.7.2004, it did not resolve the problem for the said period. Show Cause Notices were issued to wire drawing units for recovery of Cenvat Credit availed on inputs on the grounds that the process of wire drawing did not amount to manufacture for the said period. Show Cause Notices were also issued to the downstream buyers of ‘drawn wires’ who availed Cenvat Credit of amount paid as duty on drawn wire, on the ground that the sum paid on clearance of ‘drawn wire’ by wire drawing unit did not represent central excise duty. Such wire drawing units could also not claim the refund of amount paid as duty on drawn wire, on the ground of unjust enrichment. Retrospe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of the respondent. There is also no adjournment request on the record. 3. The respondent/assessee are engaged in the manufacture of dry steel bars classifiable under Chapter 72 of the CETA, 1985. They manufactured the final product out of hot rolled coils and bars which they undertake the operations of pointing, pickling, water washing, linting, cold drawing, center cutting, straightening and centreless grinding and used different types of equipments and machineries for carrying out the above processes. The respondent availed concessional rate of duty under SSI exemption Notification No. 9/2002-CE dated 1.3.2002 and 9/2003 dated 1.3.2003. A show-cause notice dated 9.7.2004 was issued proposing the demand of Rs.16,58,302/- for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in the case of M/s Technoweld Industries [2003-(155)-ELT-0209-SC]. Therefore, the benefit of availment of credit of duty on inputs by the wire drawing units was withdrawn on 29.5.2003 by a circular issued by the Board. However, certain wire drawing units continued to pay a sum representing duty, and continued to pass on the credit of amount paid as duty to the ultimate buyer of drawn wire for further manufacture. By an amendment in the Budget 2004, Note 10 was inserted in Section XV of the Central Excise Tariff Act, 1985 to declare the said process as amounting to manufacture . However, as the said Section Note was effective from 9.7.2004, it did not resolve the problem for the said period. 4.3 Accordingly, Show Cause Not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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