2006 (1) TMI 8 - AT - Central Excise

Ready mix concrete manufactured at site for construction of dam - exemption granted to concrete mix manufactured should not be given a narrow meaning

Summary

Issues Involved:
1. Interpretation of exemption under Notification No. 4/97 for concrete mix manufactured at the site of construction.
2. Classification of concrete mix as Ready Mix Concrete under Central Excise Tariff Act, 1985.

Detailed Analysis:

1. Interpretation of Exemption under Notification No. 4/97:
The case involved a dispute regarding the duty liability on concrete mix manufactured at the site of construction for use in construction work. The Revenue contended that the concrete mix fell under a specific tariff sub-heading, relying on Circulars and a previous Tribunal decision. However, the appellant claimed exemption under Serial No. 51 of Notification No. 4/97. The appellant argued that the concrete mix should be considered the same as Ready Mix Concrete, citing relevant Indian Standards. The Tribunal analyzed the exemption notification and held that the exemption should not be narrowly construed to exclude Ready Mix Concrete manufactured at the site of construction. The Tribunal emphasized that the exemption intended to cover all types of concrete mix used in construction, including Ready Mix Concrete, as long as it was manufactured at the construction site.

2. Classification of Concrete Mix as Ready Mix Concrete:
The Tribunal considered the arguments presented by both sides regarding the classification of the product as Ready Mix Concrete. The Revenue contended that the concrete mix, prepared with sophisticated machinery and transported to the site, should be classified as Ready Mix Concrete. However, the appellant argued that there was no distinction between plain and reinforced concrete and Ready Mixed Concrete, supported by relevant standards. The Tribunal referred to a previous case where the Central Government Standing Counsel clarified that Ready Mix Concrete manufactured at the site of construction was exempt. The Tribunal concluded that the benefit of exemption under Notification No. 4/97 applied to Ready Mix Concrete if it was manufactured at the site of construction. Therefore, the Tribunal ruled in favor of the appellant, holding that the concrete mix fell under Chapter 38 and was eligible for the exemption under the notification.

In conclusion, the Tribunal resolved the issues by interpreting the exemption notification broadly to include Ready Mix Concrete manufactured at the construction site. The classification of the concrete mix as Ready Mix Concrete was determined based on the manufacturing process and location. The judgment clarified the scope of the exemption and upheld the appellant's claim for exemption from duty on the concrete mix used in construction.