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2016 (10) TMI 828 - AT - Central ExciseMRP based valuation or Transaction value - supply of Cement bulk customers like manufacturers, builders, contractors, educational institutions, societies and hospitals etc. - qualification of buyer as industrial/ institution consumers - Held that: - We find that the original authority found that hospitals, co-operative societies, temples cannot be considered under the category of institutional or industrial consumers. We find the reasoning given by the original authority that schools, educational institutions and hospitals are not service industry in terms of Rule 2A of the Packaged Commodities Rules, 1977 is not tenable. The institutional consumer means those consumers who buy cement directly from the manufacturers for service industry like transportation including airway, railway, hotel or any other similar service industry. We find that educational institutions and hospitals are directly buying cement from the assessee-appellant and rightly eligible for concessional rate of duty as service institution - admittedly, the sale being direct without any intermediary involved, the criteria for retail sale has not been fulfilled. As such we find wherever such direct sale is effected the application of Packaged Commodities Rules, 1977 will not be governed by Rule 3 for enforcement - the denial of the concession in terms of the abovesaid notification for the assessee-appellant on these grounds is not justifiable. The reliance placed by the original authority on the decision of the Tribunal in Grasim Industries Ltd. vs. CCE, Trichy [2008 (10) TMI 462 - CESTAT, CHENNAI] is not proper as the department has filed civil appeal before the Hon’ble Supreme Court against the said order. Appeal filed by assessee-appellant allowed - appeal filed by Revenue rejected.
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