2005 (7) TMI 450 - AT - Central Excise

Summary

Issues:
1. Classification of concrete mix for duty under tariff heading 3824.20.
2. Exemption under entry 38 of Notification No. 4/97 for concrete mix manufactured at the site of construction.

Analysis:
The case involved a dispute regarding the classification and duty liability of concrete mix used in the construction of a dam. The appellant contended that the concrete mix prepared at the construction site and used in the dam construction was exempt under entry 38 of Notification No. 4/97. The revenue argued that the concrete mix fell under the category of ready mix concrete, attracting duty under tariff heading 3824.20. The revenue relied on a previous decision by the Tribunal in the case of Continental Foundation Joint Venture v. C.C.E. Chandigarh (2002) to support their position.

Upon examination, the Tribunal noted that the key issue revolved around the interpretation of the exemption for "concrete mix manufactured at the site of construction for use in construction work at such site." The Tribunal observed that the Indian Standard Specifications and other evidence presented did not distinguish between concrete mix and ready mix concrete, indicating that both were essentially the same for construction purposes. Consequently, the Tribunal disagreed with the decision in the Continental Foundation case and concluded that the matter required reconsideration by a Larger Bench.

In light of the above analysis, the Tribunal directed the Registry to refer the case to the Hon'ble President for the constitution of a Larger Bench to review the decision in question. The judgment highlighted the need for a comprehensive reevaluation of the distinction between concrete mix and ready mix concrete in the context of duty liability and exemption under the relevant notification. The case underscored the importance of precise classification and interpretation of legal provisions to determine the tax implications for construction materials used in infrastructure projects.