2023 (10) TMI 587 - AT - Central Excise

Clearance of cement in bulk packs, on tender, to various institutional/industrial consumers by availing benefit of Notification No.4/2006-CE dated 01.03.2006 on the transaction value - requirement to affix MRP on the packages of the said goods - HELD THAT - The issue has already been settled by this Tribunal, wherein this Tribunal in the case of M/S. ULTRATECH CEMENT LIMITED VERSUS COMMISSIONER OF CGST EXCISE, DURGAPUR 2023 (7) TMI 1110 - CESTAT KOLKATA has held the demand of duty is not sustainable against the appellant as the cement in 50 kgs bags sold to the above buyers qualifies as sale to institutional/industrial customers to avail the benefit of the above cited Notification. As the issue is no more res integra, therefore, the appellants have cleared cement in 50 kgs. bags to the buyers qualified as institutional or industrial customers, therefore, they are entitled for the benefit of Notification No.4/2006-CE dated 01.03.2006. There are no merit in the impugned order and the same is set aside - appeal allowed.

Summary

Issues involved: Challenge to demand of duty for the period June 2007 to February 2008 based on entitlement to benefit of Notification No.4/2006-CE dated 01.03.2006 and requirement to affix MRP on cement packages sold in retail packs.

Issue 1: Entitlement to benefit of Notification No.4/2006-CE dated 01.03.2006

The appellant, a cement manufacturer, cleared cement in bulk packs to institutional/industrial consumers under Notification No.4/2006-CE dated 01.03.2006. The revenue contended that the appellant must affix MRP on packages as they were selling in retail packs, leading to a demand of duty. The appellant argued that previous Tribunal cases supported their position, citing the case of Ultratech Cement Ltd. v. Commissioner of CGST & Excise, Durgapur [2023 (7) TMI 1110 -CESTAT KOLKATA]. The Tribunal held that the cement sold in 50 kgs bags to certain buyers qualified as sales to institutional/industrial customers under the Notification, thus entitling the appellant to the benefit.

Issue 2: Demand of duty for selling cement in retail packs

The appellant successfully argued that they had cleared cement in 50 kgs bags to buyers qualifying as institutional or industrial customers, making them eligible for the benefit of Notification No.4/2006-CE dated 01.03.2006. The Tribunal found no merit in the revenue's demand for duty, as the issue had been settled by previous judicial pronouncements. Consequently, the impugned orders were set aside, and the appeals were allowed with consequential relief, if any.