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2024 (1) TMI 818 - AT - Central ExciseExemption to cement supplied to industrial / institutional consumers in 50 kg. bags - eligibility for Sl.No.1C of Notification No.4/2006-CE dt. 1.3.2006 - denial of exemption on the ground that appellant had cleared the cement in 50 kg. bags without printing Retail Sale Price on the bags as required. Whether Chapter II of SWM (PC) Rules, 1977 / PC Rules of 2011 require affixation of MRP / RSP on cement bags of 50 kgs. when cleared to industrial / institutional consumes? HELD THAT:- As per the decision of the Hon’ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS M/S. MADRAS CEMENTS LTD. [2019 (11) TMI 1784 - SC ORDER] a batch of cases on the same issue was decided by upholding the decisions of the Tribunal. The Tribunal held that R.S.P is not required to be printed on cement cleared in 50 kgs. bags to industrial / institutional consumers and is covered under Sl.No.1C of Notification No.4/2006-CE dated 1.3.2006 as amended. The Tribunal in the case of GRASIM INDUSTRIES LTD. (UNIT-I) VERSUS COMMISSIONER OF C. EX., TRICHY [2008 (10) TMI 462 - CESTAT, CHENNAI] has discussed in detail the issue as to whether R.S.P has to be affixed on cement bags of 50 kgs and held that We have found favour with the assessee’s case in view of the clarification issued by the CBEC, which is to the effect that no RSP requires to be printed on the goods sold to ‘industrial/institutional consumers as defined under the rules framed under the Standards of Weights and Measures Act and that such goods would be covered under Sl. No. 1B or 1C of Notification No. 4/2006-C.E. by virtue of the Second Proviso to the Explanation to Sl. No. 1C of the Notification as amended. Thus, the allegation in the SCN as to whether the appellant has cleared cement to industrial / institutional consumers is too vague to be the basis for confirmation of demand. Further, adjudication after such lapse of time alleging that the appellant has not furnished evidences to show that the clearances of such 50 kg. bags have been made only to industrial / institutional consumers, is not justified. The demand cannot sustain and requires to be set aside - Appeal allowed.
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