Wire Drawing

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This query is : Resolved

Amit Kumar Agarwal (Querist)

15 January 2010 As per TRADE NOTICE NO.:3/2004-CE, it was clarified that the process of drawing of wires from wire rods does not amount to manufacture under section 2(f) of the Central Excise Act, 1944. I want to know if that position still continues or wire drawing was later considered as manufacturing vide some notification. Kindly mention the notification no. if it has been changed.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

16 January 2010 The chapter note (4) to chapter 72 specifies that the process of drawing or redrawing of wire bar, rod, wire rod into bright bar shall amount to manufacture. The date of insertion of this note I am not sure about. As of now it appears that the same may amount to manufacture.

Amit Kumar Agarwal

Amit Kumar Agarwal (Querist)

16 January 2010 Thanks Sir.
I am seeking for one more clarification. If drawing amounts to manufacture then when drawn wire is issued for captive consumption for manufacture of Excisable Goods, does the assessee need to issue invoice of captive consumption charging nil duty as it would amount to deemed removal. Kindly clarify.

SANJAY JAIN

SANJAY JAIN (Expert)

19 January 2010 The amendment was brought vide Section 89 of Finance(No.2)Act,2004.

Further there is no need to pay duty on captive consumption for being exemption under Notification No. 67/95-CE dated 16.03.95 subject to fulfilment of the conditions therein.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).

SANJAY JAIN

SANJAY JAIN (Expert)