2015 (8) TMI 1378 - AT - Central Excise

Cement - benefit of N/N. 4/2006-C.E. dated 1-3-2006 - Revenue is of the view that these customers cannot be considered as Industrial and Institutional customers therefore the appellants are not entitled for the benefit of the concessional rate of duty as per Notification - Held that - in the case of Ultratech Cement Ltd. 2014 (9) TMI 966 - CESTAT NEW DELHI the issue has been settled that the appellants are entitled to avail benefit of N/N. 4/2006-C.E. ibid availing concessional rate of duty - the appellants are entitled to claim the benefit of N/N. 4/2006-C.E. dated 1-3-2006 for the clearances - appeal allowed - decided in favor of assessee.

Summary

Issues Involved:
- Appeal against demand of duty, interest, and penalties under Section 4A of the Central Excise Act, 1944.
- Interpretation of Notification No. 4/2006-C.E. regarding concessional rate of duty for cement.
- Classification of customers as Industrial and Institutional for availing concessional rate of duty.

Analysis:
The appellants, who are cement manufacturers, appealed against orders confirming duty demand, interest, and penalties under Section 4A of the Central Excise Act, 1944. They supplied cement in loose form and 50 kg bags, claiming exemption under Notification No. 4/2006-C.E. at concessional rates for Industrial and Institutional customers. The Revenue disputed the classification of customers, leading to show cause notices and confirmed demands. The appellants contended that a previous decision involving Ultratech Cement Ltd. established their entitlement to the benefits of the notification. The Tribunal, following the Ultratech Cement case, ruled in favor of the appellants, allowing them to claim the benefits of Notification No. 4/2006-C.E. for the disputed clearances. Consequently, the impugned orders were set aside, and the appeals were allowed with any consequential relief.

This judgment primarily revolved around the interpretation of Notification No. 4/2006-C.E. and the classification of customers as Industrial and Institutional for availing concessional rates of duty on cement clearances. The Tribunal considered the submissions and relied on a previous decision involving Ultratech Cement Ltd. to determine the appellants' entitlement to the benefits of the notification. By following the precedent set in the Ultratech Cement case, the Tribunal concluded that the appellants were indeed eligible to claim the benefits of the notification for the disputed clearances in the present proceedings. This decision highlights the importance of consistent interpretation and application of legal provisions across similar cases to ensure fairness and adherence to established precedents in tax matters.

Overall, the judgment provides clarity on the applicability of Notification No. 4/2006-C.E. and reaffirms the significance of previous decisions in shaping outcomes in similar cases. The ruling underscores the need for a thorough analysis of legal provisions and precedents to determine the entitlement of taxpayers to benefits and exemptions under relevant laws. By setting aside the impugned orders and allowing the appeals with consequential relief, the Tribunal upholds the principle of consistency and fairness in tax adjudications, ensuring that taxpayers receive due consideration based on established legal interpretations and precedents.