2006 (11) TMI 619 - AT - Central Excise

Summary

Issues involved:
Manufacture of ready mix concrete, exemption under Notification 4/97-CE, applicability of exemption to ready mix concrete manufactured at site.

Manufacture of ready mix concrete:
The appellants manufacture ready mix concrete. The issue pertains to their claim for exemption under serial No.51 of Notification 4/97-CE. The claim was disallowed on the basis that the notification covers concrete mix manufactured at the site, not ready mix concrete. However, a precedent set by the larger bench in Chief Engg. Ranjit Sagar Dam vs. CCE, Jalandhar 2006 (198) ELT 503, concluded that ready mix concrete manufactured at the site is indeed eligible for exemption under the said notification. The larger bench clarified that both ready mix concrete and concrete mix fall under Chapter 38 of the Central Excise Tariff Act, and the exemption should not be narrowly interpreted to exclude ready mix concrete. Consequently, the Tribunal set aside the orders confirming duty and penalties, extending the benefit of exemption to the ready mix concrete manufactured at the site.