2023 (10) TMI 494 - AT - Central Excise

Concessional rate of duty - cement cleared for self-use and free issue to the contractor - benefit of N/N. 4/2006-CE dated 01.03.2006 as amended - HELD THAT - The Mumbai Bench of the Tribunal in the case of ACC Ltd. 2017 (8) TMI 1168 - CESTAT CHENNAI considered the similar issue and held that the duty demand cannot sustain holding that we are unable to accept the argument of the adjudicating authority that these two types of clearances amounting to 26434.30 MTs fall foul of the Notification No. 4/2006-C.E. These clearances, in our considered view, cannot be considered as retail sales and hence benefit of the said notification cannot be denied to them. In the appellant s own case for the earlier period, the Tribunal has applied the said decision to set aside the demand and also dismissed the appeal filed by the Department - the demand cannot sustain and requires to be set aside - appeal allowed.

Summary

Issues Involved:
The issue involved in this case is whether the appellants are eligible for concessional rate of duty on cement cleared for self-use and free issue to the contractor.

Comprehensive Details of the Judgment:

Issue 1: Eligibility for Concessional Rate of Duty
The appellants, engaged in the manufacture of cement, cleared cement for self-use and free issue to a contractor at a Retail Sale Price (RSP) of Rs.185/- per 50 Kg. The Department contended that the appellant was not eligible for the duty exemption under Notification No. 4/2006-CE. A Show Cause Notice was issued proposing duty demand, interest, and penalties. The original authority confirmed the demand and interest but dropped the penalty proposal. The appellant appealed to the Commissioner (Appeals) who upheld the decision.

Issue 2: Arguments Presented
The appellant's consultant argued that the duty was paid as per the prescribed rates under the Notification for self-use and free issue of cement to the contractor. The Preventive Unit officers believed that the concessional rate of duty applied only to cement sold to dealers and direct customers, not for self-use or free issue. The appellant cited a previous Tribunal decision in a similar case to support their claim for the concessional rate of duty.

Issue 3: Tribunal's Decision
The Tribunal considered the facts and the previous Tribunal decision in a similar case involving ACC Ltd. The Tribunal held that the demand for duty could not be sustained based on the interpretation of the relevant provisions. The Tribunal found that the clearances for self-use and free issue did not qualify as retail sales, thus entitling the appellant to the benefit of the Notification. The Tribunal set aside the demand and allowed the appeal with consequential reliefs.

Conclusion
The Tribunal, following the precedent set in the earlier decision, concluded that the appellants were eligible for the concessional rate of duty on cement cleared for self-use and free issue to the contractor. The demand was set aside, and the appeal was allowed with any necessary reliefs.