2009 (6) TMI 927 - AT - Central Excise

Summary

Issues involved: Interpretation of Notification No.4/2006-CE dated 1.3.2006 regarding exemption for cement packed in 50 Kgs. bags sold to industrial/institutional consumers.

Issue 1: Interpretation of Notification No.4/2006-CE

The Tribunal considered whether cement cleared in 50 Kgs. bags to industrial/institutional consumers during the period in dispute was covered under Sl. No.1C of Notification No.4/2006-CE. The Tribunal referred to previous decisions in Grasim Industries Ltd. and Dalmia Cements (Bharat) Limited cases where it was held that the benefit of the Notification was available to goods cleared to industrial/institutional consumers. The Tribunal noted that the goods in question would be covered under either Sl. No.1B or 1C of the Notification by virtue of the second proviso to the Explanation to Sl. No.1C. Relying on the precedent set by the earlier decisions, the Tribunal set aside the impugned order of the Commissioner of Central Excise and allowed the appeal.

This judgment highlights the importance of precedent and consistent interpretation of legal provisions in tax matters. The Tribunal's decision provides clarity on the application of Notification No.4/2006-CE and reaffirms the principle that similar cases should be treated in a consistent manner to ensure fairness and predictability in tax administration.