Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

ACC Ltd. Versus Commissioner of Central Excise, Coimbatore

2017 (8) TMI 1168 - CESTAT CHENNAI

Concessional Rate of Duty - cement - retail sale - whether the clearances of cement made by the appellant will satisfy the conditionalities of Entry 1C of Notification No.4/2006-CE dt. 01.03.2006 to benefit from reduced duty liability of ₹ 400 per ton? - Held that: - It is seen that the appellant had sold cement in packs of 50 kgs each. Except for 945.05 MTs (self-consumption) and 632.30 MTs (stock-in-transit closing stock at warehouse), the remaining portion of the disputed clearances tot .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

we find that the provisions applicable to packages intended for retail sale in Chapter II of the said rules, will not apply to the clearances of cement by the appellant to its Industrial or Institutional consumers. - In respect of the clearances of 25489.250 MT (26434.30 MT Less 945.050 MT) referred to in the Annexure to the Show cause notice, these clearances will necessarily have to be held as packages not intended for retail sale and to which the provisions of Chapter II of the Rules sha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ification cannot be denied to them - appeal allowed - decided in favor of appellant. - E/126/2009 - 41783/2017 - Dated:- 21-8-2017 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Raghavan Ramabadran, Advocate For the Appellant Shri S. Govindarajan, AC (AR) For the Respondent ORDER Per: Bench The facts of the case are that appellant is engaged in the manufacture of cement falling under Chapter 2523 29 90 of CETA. The cement was cleared in bags of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- per tonne. During the impugned period, the Appellant claimed concessional rate of duty on 28,470.20 MT of cement cleared to various consumers. A Show Cause Notice No.03/2008 dated 08.04.2008 was issued alleging that only 2,980.95 MT of the said clearances, sold to M/s. Visaka Industries Ltd. & M/s.The Indian Hume Pipe Co. Ltd. can be said to been cleared to eligible consumers while 25,489.25 MTs which have been cleared to other than industrial/institutional consumers and hence concessional .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

peal. 2. Today when the matter came up for hearing, on behalf of appellant, ld. Advocate Shri Raghavan Ramabhadran reiterated the grounds of appeal and also made oral and written submission which can be broadly summarized as under : (i) Details of various consumers to whom NFR bags have been sold during the impugned period are as under: SI.No. Category of Customer Uses Quantity (in MT) 1. Builders Construction of Buildings 9,447.30 2. Contractors Construction of Infrastructure/ Buildings/ Govt. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nsumption inside factory Construction & other purposes 945.05 12. Stock-in-transit/ closing stock at warehouses Unsold 632.30 Total 29,415.25 (ii) This table was submitted to the Commissioner and there is no dispute regarding the same. The only ground of denial is that the above categories do not constitute. (iii) The goods manufactured and cleared by them are classifiable in CETH 25232990 with tariff rate of ₹ 600/- per tonne during the impugned period, a fact which is not disputed. T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

SoW&MRules] to contend that the said provision will not apply to the cement cleared by them since they would not constitute packages to which the provisions of that chapter apply. (vi) Issue is no longer res integra. It has been held in the following cases that cement cleared in packaged from (50 kg bags) to charitable organizations, builders/ developers/ ready mix concrete (RMC) manufacturers, contractors and construction firms, infrastructural development projects, educational institutions .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Tri.-Del) vi. CCE Vs. Mysore Cements Ltd, 2010 (259) E.L.T. 30 (Kar.) vii. Mysore Cements Ltd. Vs. CCE, 2010 (349) E.L.T. 398 (Tri. Bang.) viii. Grasim Industries Ltd. (Unit-I) Vs. CCE, 2009 (238) E.L.T. 655 (Tri. - Chennai) ix. Shree Cement Ltd. Vs. CCE, 2016-VIL-1020-CESTAT-DEL-CE x. Chettinad Cement Corp. Ltd. Vs. CCE, 2015 (329) E.L.T. 845 (Tri. - Chennai) xi. Grasim Industries Ltd. Vs. CCE, 2004 (175) E.L.T. 779 (Tri. Del.) (vii) In the instant case, the non-trade sector sale bags and relev .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ptively or held as unsold stock inasmuch as Packaged Commodity Rules are attracted only in case of a retail sale and in the present case, there is no sale at all. Hence, the quantity of 945.05 MT cement used inside the factory for repairs and construction and 632.30 kept unsold in the warehouses during the impugned period will not attract a duty @ ₹ 600/- per MT as incorrectly alleged in the O-I-O. 3.1 On the other hand, on behalf of Revenue, Ld. A.R Shri S. Govindarajan supports the adjud .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

atisfied the term "for using the product in their industry for production". It is only a use for construction purpose and nothing to do with further production. Hence concessional rate of duty under Notification No.04/06-cannot be availed for these clearances also. 4.1 Heard both sides and have gone through the facts. The core issue that comes up for appellate decision in this appeal is whether the clearances of cement made by the appellant will satisfy the conditionalities of Entry 1C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hird Proviso to the Entry 1C of the notification "clarifies which goods should be considered as cleared in other than packaged form". The said provision reads as under : "Provided also that where the retail sale price of the goods are not required to be declared under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, and thus not declared, the duty shall be determined as is in the case of goods cleared in other than packaged form;" 4.4 We therefore now .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

kg; and (b) packaged commodities meant for industrial consumers or institutional consumers. Explanation: For the purpose of this rule, - (a) Institutional consumer-Means those consumers who buy packaged commodities directly from the manufacturers/packers for service industry like transportation [including airways, railways], hotel or any other similar service industry. (b) Industrial Consumer-Means those consumers who buy packaged commodities directly from the manufacturers/packers for using th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion, educational institutions, hospitals and societies. From a combined reading of the above reproduced provisions of Rule 2A of the Rules, these genre of buyers would fall under the category of Institutional Consumer or Industrial Consumer, in our opinion. On this score itself, we find that the provisions applicable to packages intended for retail sale in Chapter II of the said rules, will not apply to the clearances of cement by the appellant to its Industrial or Institutional consumers. 4.6 I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s to be read disjunctively and not conjunctively. The relevant portion of the decision is reproduced below for ready reference : "5.2 From the above, it can be seen that packages of commodities containing a quantity of more than 25 kg or 25 litre excluding cement and fertilizers sold in bags upto 50 kg and packaged commodity meant the industrial or institutional consumer are excluded from the provisions of the said Rules. In other words, the Rules exclude two categories - the first category .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version