2002 (9) TMI 132 - HC - Central Excise

Summary

Issues involved: Challenge to circular under Central Excise Act and Constitution of India regarding classification and levy of duty on Ready Mix Concrete.

Summary:
The petitioner sought a writ of declaration to challenge a circular issued by the 2nd respondent under Sections 55-A and 37-B of the Central Excise Act, 1944, and Article 265 of the Constitution of India. The petitioner, operating a Ready Mix Concrete unit, faced classification and duty issues as the product was not specified in Chapter 28 of the Central Excise Tariff Act, 1985. The confusion was addressed by the Central Board of Excise and Customs, classifying Ready Mix Concrete under sub-heading 3824.20. The circular in question clarified the distinction between Ready Mix Concrete and Concrete Mix, stating that Ready Mix Concrete is chargeable to excise duty even if manufactured at the construction site. The respondents argued that duty is leviable on Ready Mix Concrete if manufactured in a unit installed for that purpose and transported to construction sites. The court disposed of the petition based on the representation made by the Additional Central Government Standing Counsel, concluding that Ready Mix Concrete is exempted only if manufactured at the site for one's own construction.