CCE Vs. SOMEX INDIA

JUDGEMENT

(1.) REVENUE filed this appeal against the Order -in -appeal No. 242(MPL)/CE/JPR -1/2005 dated 5.8.2005 passed by the Commissioner (Appeals), Central Excise, Jaipur.

(2.) THE relevant facts of the case, in brief, are that the respondents are engaged in the manufacture of electric cables classifiable under sub -heading No. 8544.90 of the Schedule to the Central Excise Tariff Act, 1985. They availed credit on inputs used in the manufacture of electric cables cleared on payment of duty. The Hon'ble Supreme Court in the case of Technoweld Industries held that the process of drawing of wire from wire rods does not amount to manufacture under the definition of Section 2(f) of Central Excise Act, 1944. Therefore, show cause notice was issued proposing to recover Cenvat credit on inputs wire utilized for the process of electric cables. The adjudicating authority confirmed the demand of duty and imposed penalty. The Commissioner (Appeals) set aside the adjudication order.

(3.) THE learned D.R. reiterates the grounds of appeal filed by the Revenue. He submits that the duty paid on electric cables is mere deposit and, therefore, the credit is liable to be recovered from the respondents.