2019 (3) TMI 512 - AT - Central Excise

Clearance of goods to the construction industry - sale to institutional/industrial consumers - concessional rate of duty under SI. No. 1C of N/N. 04/2006-CE dated 01/03/2006 and N/N. 12/2012-CE dated 17/03/2012 - Held that - The builder and construction companies qualify as institutional/industrial consumers, hence the benefit of the said Notifications would be available to the assessee - appeal allowed - decided in favor of appellant.

Summary

Issues:
Entitlement of benefit under Notification No.04/2006 and Notification No.12/2012-CE for cement clearance to construction industry.

Analysis:
The case involved a dispute regarding the entitlement of benefits under SI. No. 1C of Notification No.04/2006 and Entry 52 of Notification No.12/2012-CE for the clearance of cement to the construction industry. The appellant, a cement manufacturer, claimed concessional duty rates by treating the goods as 'other than those cleared in packaged form' and marked as 'Not for Retail Sale' for sale to institutional/industrial consumers. The appellant argued that since the goods were sold to construction companies, they qualified as industrial/institutional consumers, exempting them from declaring retail prices as per SWMPC Rules and making them eligible for the benefits under the mentioned Notifications.

The department issued show cause notices proposing to deny the benefits, contending that construction companies did not qualify as institutional/industrial consumers, requiring the appellant to declare retail prices on the bags. The Adjudicating Authority upheld the demands, rejecting the appellant's argument. However, the appellant relied on precedents like Commissioner vs. Lafarge India Pvt. Ltd. and Ultratech Cement Ltd. vs. CCE, Indore, where it was held that cement sales to builders and construction companies qualified as sales to institutional consumers, allowing for benefit under SI. No. 1C of Notification No.04/2006-CE.

After considering the arguments and case laws, the Tribunal concluded that builder and construction companies indeed qualified as institutional/industrial consumers, thereby entitling the appellant to the benefits under the Notifications. The impugned order was set aside, and the appeal was allowed, granting the appellant consequential benefits as per the law.