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TMI Blog2015 (12) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... rious forums. Legislature has passed the Taxation Laws (amendment) Rules, 2005 wherein retrospective amendment was introduced to settle this kind of situation. - Board has specifically stated that the amendment has regularized the credit taken at the input stage (wire rods) and the credit taken by the downstream user who draws the wire. In our view as per the Board’s Circular, the demands raised on the appellant herein is incorrect and the impugned order needs to be set aside - Decided in favour of assessee. - Appeal No. E/2021 to 2023/05 - Final Order Nos. A/3797-3799/2015-WZB/EB - Dated:- 2-11-2015 - Shri M.V. Ravindran, Member (Judicial) And Shri C.J. Mathew, Member (Technical) For the Petitioner : Shri M.H. Patil, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the matter is now decided by the Tribunal relying upon the very same Circular in the case of K.E.I. India - 2008 (222) ELT 555 (T). 4. The learned AR reiterates the findings of the lower authorities. 5. On perusal of the records, we find that the issue involved in this case is regarding the ineligible CENVAT Credit availed on MS wire rods and various chemicals which were utilized by the appellant for drawing the wire during period Sept, 02 to March, 04. It is the case of the Revenue that after the judgment of the Apex Court in the case of Technoweld Industries - 2003 (155) ELT 209 (SC), the mere drawl of wire from wire rods does not amount to manufacture. Accordingly, CENVAT Credit availed during the period wherein the activity un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility given to the Trade to settle the dispute at an early stage to reduce litigation and also aid in collection of tax dues more expeditiously. The scheme is optional and not compulsory. The assessee has the further option of using the proposed facility in full or in part. In case of part payment, the remaining amount will be subject to regular proceedings as per the law. 3. Section 35E the Central Excise Act, 1944, authorizes a Commissioner of Central Excise to review the orders passed by an adjudicating authority subordinate to him and direct filing an appeal before the appellate authority. While sub-section (4) of the said Section speaks of filing such an appeal by adjudicating authority or the authorized officer, the erstwhile sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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. In this regard, Board's letter dated 3rd January 2005 issued vide F. No. 139/3/2004-CX.4 may also be referred to. 4.4 The retrospective amendment in Rule 16 is aimed at facilita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006. 5. Two new sections namely, section 11DDA and section 37E have been incorporated in the Central Excise Act, 1944. Detailed instructions regarding these instructions shall be issued in due course. It can be seen from the above reproduced Circular that in para 4.4 the Board has specifically stated that the amendment has regularized the credit taken at the input stage (wire rods) and the credit taken by the downstream user who draws the wire. In our view as per the Board s Circular, the demands raised on the appellant herein is incorrect and the impugned order needs to be set aside and we do so. It is seen that Tribunal in the case of K.E.I. India (supra) has taken the same view following CBEC Circular. 7. The impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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