2018 (2) TMI 377 - AT - Central Excise

Benefit of N/N. 04/2006 dated 01.03.2006 as amended - Cement packaged in the form of 50 kg per bag - Held that - similar issue decided in the case of GRASIM INDUSTRIES LTD. (UNIT-I) Versus COMMISSIONER OF C. EX., TRICHY 2008 (10) TMI 462 - CESTAT, CHENNAI , where it was held that CBEC Circular No.124/02/2008 CX-3, DT.12/06/2008 vide Para 3 read with Para 2 (ii) of the Circular categorically states that exemption would be eligible under Sl.No.1C of N/N. 4/2006-CE whenever the goods are sold to institutional/industrial consumers - demand not sustainable - appeal dismissed - decided against Revenue.

Summary

Issues:
- Interpretation of Rule 2A (a) and Rule 2A (b) of the PC Rules for availing exemption under Notification No. 04/2006
- Applicability of the exemption for goods sold to industrial/institutional consumers
- Settlement of the issue in favor of the Respondents based on previous judgments and CBEC Circulars

Analysis:
1. Interpretation of Rule 2A (a) and Rule 2A (b) of the PC Rules:
The case involved a dispute regarding the interpretation of Rule 2A (a) and Rule 2A (b) of the PC Rules for availing exemption under Notification No. 04/2006. The Respondent argued that since the cement was sold to industrial/institutional consumers, where the declaration of Maximum Retail Price (MRP) was not required, they were eligible for the exemption. The Respondent contended that the clauses in Rule 2A (a) and Rule 2A (b) were mutually exclusive, and the absence of the need for MRP declaration justified their exemption claim.

2. Applicability of the exemption for goods sold to industrial/institutional consumers:
The Respondent relied on previous judgments, including the decision in Grasim Industries Ltd. vs. Commissioner of C.Ex., Trichy, 2009, to support their position that the cement bags cleared for industrial/institutional consumption fell under the purview of the exemption provided in Notification No. 04/2006. Additionally, the Respondent cited CBEC Circular No. 124/02/2008 CX-3, which clarified that exemption under Sl.No.1C of the Notification was applicable when goods were sold to institutional/industrial consumers. The Tribunal, considering these arguments and precedents, upheld the Respondent's claim and dismissed the appeal filed by the department.

3. Settlement of the issue in favor of the Respondents based on previous judgments and CBEC Circulars:
The Tribunal, after hearing both sides and analyzing the arguments presented, concluded that the issue had been settled in favor of the Respondents based on previous judgments and CBEC Circulars. The Tribunal found that the judgments relied upon by the Respondent's counsel clearly supported the position that the demand made by the department was unsustainable. Therefore, the Tribunal held that the appeal filed by the department lacked merit and was subsequently dismissed, affirming the Respondent's entitlement to the exemption under Notification No. 04/2006.