2015 (9) TMI 1029 - SC - Central Excise

Classification of goods - whether the product manufactured out of stone aggregates, cement, water, sand is dry mixture or ready mix concrete and the classification thereof is under Heading 3823 (now 3824) - Held that - CESTAT in the case of Associated Cement Co. Ltd. v. Commissioner of Central Excise, Mumbai by its decision dated 17.11.2000 reported in 2000 (11) TMI 970 - CEGAT, MUMBAI . We, further, find that the aforesaid view of the CESTAT was affirmed by this Court holding that the classification of ready mix concrete was under Chapter Heading 68 for the period prior to 01.03.1997. After the affirmation of the view of the CESTAT by this Court as aforesaid, the Department not only accepted the said view but Central Board of Excise and Customs, New Delhi, issued Circular No. 601/38/2001-CX dated 20.11.2001 affirming the classification of this product - what was the necessity in preferring the present appeal which was filed in the year 2006, i.e., much after the clarification issued by the even the Central Board of Excise and Customs, New Delhi. It was, thus, a total mindless exercise on the part of the Revenue in filing such an appeal which is misuse and abuse of the process of law. - Decided against Revenue.

Summary

Issues involved: Classification of product manufactured from stone aggregates, cement, water, and sand as 'dry mixture' or 'ready mix concrete' under Heading 3823 (now 3824).

Detailed Analysis:

1. Issue of Classification: The primary issue in this case was the classification of the product manufactured from stone aggregates, cement, water, and sand. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had previously ruled in favor of the respondent-assessee. The CESTAT's decision in the case of 'Associated Cement Co. Ltd. v. Commissioner of Central Excise, Mumbai' was cited, where it was held that the classification of ready mix concrete fell under Chapter Heading 68 for the period before 01.03.1997. This view was affirmed by the Supreme Court, and the Department, along with the Central Board of Excise and Customs, issued Circular No. 601/38/2001-CX dated 20.11.2001, confirming this classification.

2. Misuse of Legal Process: The Court expressed its perplexity regarding the necessity of the Revenue's appeal filed in 2006, long after the clarification issued by the Central Board of Excise and Customs. The Court deemed the appeal as a "total mindless exercise" and criticized it as a misuse and abuse of the legal process. The Court highlighted the futility of pursuing the appeal given the clear classification established by previous decisions and official circulars.

3. Judgment: Considering the established legal precedents and the circular issued by the Central Board of Excise and Customs, the Court dismissed the appeal. The Court's decision was based on the fact that the classification issue had already been conclusively settled through previous rulings and official communications. The Court's dismissal of the appeal underscored the inefficacy and unwarranted nature of the Revenue's legal pursuit in this matter.