2005 (4) TMI 176 - AT - Central Excise

Summary

Issues involved: Determination of whether the goods manufactured are 'Ready Mix Concrete' (RMC) and liability to pay duty, liability for penalty under Central Excise provisions.

Analysis:
1. The issue in the appeals was whether the goods produced by the appellants are 'Ready Mix Concrete' (RMC) and if they are subject to duty payment and penalty under Central Excise provisions.
2. The appellants contended that what they manufactured was not RMC but 'Concrete Mix' as the goods were used in captive consumption near the manufacturing site, which they argued falls under a different standard (IS 456-1978) than RMC (IS 4926-1976).
3. The Revenue argued that the product should be classified as RMC based on the method of production, citing a previous Tribunal decision. The Adjudicating authority detailed the manufacturing process at the appellants' factory, emphasizing the advanced and precise manufacturing process used for RMC.
4. The Adjudicating authority concluded that the goods manufactured were indeed RMC, based on the manufacturing facility's setup and the stringent quality control observed in the production process. The authority upheld the classification of the goods as RMC and justified the penalty imposed under Section 11AC, reducing it to Rs. 10,00,000, while setting aside the penalty under Rule 209A on the Construction Manager.
5. The judgment highlighted that the manufacturing process, precision, and quality control distinguished RMC from other cement concretes, supporting the classification of the goods as RMC. The Tribunal upheld the Original Authority's decision, citing the applicability of the case law referenced by the Revenue and the justification for invoking the extended period for penalty imposition.

This detailed analysis of the judgment provides insights into the arguments presented by both parties, the Tribunal's assessment of the manufacturing process, and the final decision regarding the classification of the goods as 'Ready Mix Concrete' (RMC) and the associated penalties.