2018 (2) TMI 1396 - AT - Central Excise

Demand of differential duty - Cement - benefit of N/N. 4/2006/4/07-CE (as amended) - case of Revenue is that appellant herein had cleared cement to construction companies, and not affixed any MRP on the cement bags, and claimed the benefit of N/N. 4/2006/4/07 (as amended) on the ground that construction companies cannot be categorised as industrial consumers or institutional buyers - Held that - Hon ble High Court of Karnataka in an identical set of facts in the case of Mysore Cements Ltd 2009 (5) TMI 445 - CESTAT, BANGALORE has held that Tribunal committed no illegality in holding that the construction industry is a service industry and the assessee had satisfied the other requirement of the Notification, they are entitled to the benefit under the Notification. Demand set aside - appeal allowed - decided in favor of appellant.

Issues:
1. Out-of-turn hearing of appeals.
2. Demand of confirmation of differential central excise duty.
3. Interpretation of Notification No.4/2006/4/07-CE.
4. Classification of construction industry as a service industry.
5. Benefit eligibility under Notification No.4/2006.
6. Applicability of concessional rate of duty.
7. Judicial precedents and tribunal decisions.

Detailed Analysis:
1. The judgment addresses the issue of out-of-turn hearing of appeals, allowing the applications based on the ground that the matter is covered by various decisions of the Bench. The appeals were directed against specific Order-in-Originals, and after hearing both sides and perusing the records, the Tribunal proceeded with the disposal of the appeals due to similar/identical issues being listed for disposal.

2. The central issue revolves around the demand for confirmation of differential central excise duty on the appellants concerning the clearance of cement to construction companies without affixing any MRP on the cement bags. The Revenue claimed that the appellants did not qualify for the benefit of Notification No.4/2006/4/07 (as amended) as construction companies were not considered industrial consumers or institutional buyers.

3. The interpretation of Notification No.4/2006/4/07-CE is crucial in this case. The appellants claimed the benefit of Clause-1C of the Notification, citing a Tribunal decision in favor of the appellant. The Tribunal held that the construction industry is a service industry and entitled to the concessional rate of duty under the Notification.

4. The classification of the construction industry as a service industry was a point of contention. The Tribunal referred to a decision by the Hon'ble High Court of Karnataka, which held that the construction industry qualifies as a service industry and is entitled to the concessional rate of duty under the Notification.

5. The eligibility of the appellants for benefits under Notification No.4/2006 was extensively discussed. The Tribunal considered the submissions made by the appellant's counsel regarding the nature of the construction industry and the applicability of the concessional rate of duty based on the packaging of cement.

6. The applicability of the concessional rate of duty was a significant aspect of the judgment. The Tribunal analyzed the provisions of the Notification, previous decisions by co-ordinate Benches, and the nature of clearances made to institutional consumers, including the construction industry, to determine the entitlement of the appellants to the benefit under the Notification.

7. The judgment extensively referred to judicial precedents and tribunal decisions to support the interpretation of the law. Various cases, including Mysore Cements Ltd, Heidelberg Cement (India) Ltd, and Ultra Tech Cement Ltd, were cited to establish a consistent view regarding the classification of the construction industry as a service industry and the eligibility for concessional rates of duty.

This detailed analysis of the judgment highlights the key issues addressed, the legal interpretations made, and the precedents relied upon to arrive at the final decision in favor of the appellant.

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