BALAJI GALVANISING INDUSTRIES Vs. COMMISSIONER OF CUSTOMS AND

JUDGEMENT

(1.) THIS appeal has been filed against the Order -in -Appeal No. 107/2005 (H -I) CE dated 30.06.2005 passed by the Commissioner of Customs and Central Excise (Appeals - I), Hyderabad.

(2.) THE appellants are manufacturers of Wires from Wire Rods. They availed Cenvat credit on capital goods as well as the input wire rod in order to manufacture the wires, which were removed on payment of duty. There was also a circular of the Board dated 16.2.2001, wherein they had clarified drawing of wire from wire also would amount to manufactures and such wires are chargeable to appropriate duty of Central Excise. However consequent to the Apex Court decision in the case of Commissioner v. Viswaman Industries , Commissioner v. Hind Enterprises 2003 (153) ELT A 93 (SC) and Collector of Central Excise v. Technoweld Industries , earlier circular was withdrawn by the Board in its circular dated 29.05.2003. Consequent to the withdrawal of the circular, the department issued show cause notices for denial of Modvat credit on inputs on the ground that the process does not amount to manufacture. Since the appellants during the relevant period followed the Board's circular the matter was taken up the Ministry. In fact, earlier instructions were issued to keep all the show cause notices pending in the call book and no coercive action has to be taken till further orders.

(3.) THE learned Counsel Shri Negi, who appeared on behalf of the appellants brought to our notice Taxation Laws Amendment Act 2006, which is reproduced below: TAXATION LAWS (AMENDMENT) ACT, 2006 Section 39. Amendment of Rule 16 of the Central Excise Rules, 2002. -