2005 (4) TMI 416 - AT - Central Excise

Summary

Issues:
Interpretation of exemption Notification No. 36/94-C.E. for manufacturing concrete building blocks using perlite as aggregate.

Analysis:
The appellant argued that their product, concrete building blocks made with perlite, falls under the exemption Notification No. 36/94-C.E. They referred to various standards and opinions to support their claim that perlite-based blocks qualify as lightweight concrete blocks. They cited the Supreme Court's interpretation in previous cases that legislative standards can encompass evolving circumstances and materials. They contended that the use of perlite powder in concrete manufacturing is established and should not disqualify them from exemption. The department's argument that the blocks are not concrete blocks as they lack concrete is refuted, emphasizing that the exemption for lightweight concrete blocks does not require on-site use in construction. The appellant's plea was supported by a Supreme Court decision that broadened the definition of "building" to include infrastructure within factory premises.

The Revenue, represented by a learned JDR, reiterated the lower authorities' reasons for denying the exemption to the appellant's blocks.

Upon careful consideration, the Tribunal found that the key issue was determining whether the blocks in question qualified as lightweight concrete building blocks. To settle this factual question, the Tribunal decided to refer the sample of the block to a civil engineering department of an Engineering College/University. The density of the block, not exceeding 1000 Kg/m3, was also highlighted as a crucial factor to be determined by the original authority through expert opinion. Consequently, the Tribunal set aside the Commissioner (Appeals) order and remanded the matter back to the original authority for reevaluation based on technical opinions from civil engineering experts.

In conclusion, the appeal was allowed by way of remand, with the Tribunal emphasizing the need for expert assessment to determine whether the perlite-based blocks met the criteria for lightweight concrete building blocks under the exemption notification.