2016 (5) TMI 1427 - AT - Customs

Valuation - Cement - requirement of RSP to be declared - whether cement sold in 50 Kgs packed condition to Builders, Developers, Ready Mix Concrete Manufacturers /Government etc. would come within the category of Institutional consumers? - Held that - the issue decided in the case of ULTRATECH CEMENT LTD. Versus COMMISSIONER OF CENTRAL EXCISE, INDORE 2014 (9) TMI 966 - CESTAT NEW DELHI , where it was held that cement in 50 Kg bags sold to builders/developers qualifies as sales to institutional consumers and benefit of serial number 1C of N/N. 4/2006-C.E., is available to such clearances - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Interpretation of the definition of Industrial/Institutional Consumers for cement sales to Builders, Developers, and other entities in 50 Kgs bags without printing RSP.

Analysis:

1. The appellant, a cement manufacturer, was clearing cement to consumers like Contractors, Apartment Builders, Developers, and Big Companies without printing the RSP, considering them as Industrial/Institutional consumers. The Department disagreed with this classification, leading to a show cause notice for a demand of differential duty. The appellant argued that declaring retail price was unnecessary for goods sold to Institutional consumers. The Tribunal had to determine whether the consumers in question fell under the category of Industrial/Institutional Consumers.

2. After adjudication, the demand was upheld, stating that Contractors, Builders, Developers, and Big Companies did not qualify as Institutional consumers. The appellant, dissatisfied with this decision, approached the Tribunal for redress. The key issue revolved around the classification of the consumers and whether they met the criteria to be considered as Industrial/Institutional Consumers under the relevant laws.

3. The Tribunal referred to various precedents, including cases like Ultratech Cement Ltd Vs CCE, Heidelberg Cement (India) Ltd Vs CE, and Penna Cement Industries Ltd Vs CCE CST, to determine the classification of consumers in similar scenarios. Relying on the principles established in these judgments, the Tribunal set aside the impugned orders and allowed the appeal, granting consequential reliefs as applicable. The decision was pronounced in open court, providing clarity on the interpretation of the term Industrial/Institutional Consumers in the context of cement sales.