Board's Circular No. 237/71/96-CX dated 12.8.96 classification of Ready Mix Concrete - regarding - Central Excise - 315/31/97-CX

Circular No. 315/31/97-CX dated 23/5/97 F.No. 126/1/96-CX.3 Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs, New Delhi Subject: Board's Circular No. 237/71/96-CX dated 12.8.96 classification of Ready Mix Concrete - regarding I am directed to refer to Member (CX)'s D.O. letter of even number dated 22.1.1997 (Copy enclosed) 1 wherein it was directed the Board's Circular No. 237/71/96-CX dated 12.8.96 regarding classification of Ready Mix concrete be kept in abeyance. After re-examining the matter it has been decided to withdraw the aforesaid instruction contained in Member (CX)'s D.O. letter dated 22.1.1997. Accordingly, the clarification issued vide above mentioned Circular dated 12.8.1996 stating that the product Ready Mix Concrete is an excisable goods and is classifiable under Heading No. 38.23 of Central Excise Tariff Act, 1985 stands confirmed. 2. In the 1997-98 Budget 'Concrete Mix' falling within Chapter 38 and manufactured at the site of construction for use in construction work at such site has been exempted from central excise duty vide notification No. 4/97-CE (S.No. 51) dated 1.3.1997. Board's Circular No. 237/71/96-CX dated 12.8.96 refers to Ready Mix Concrete which figures as a new Tariff entry namely sub-heading No. 3824.20 w.e.f. 1.3.97 chargeable to duty @ 13%. A doubt has been raised as to whether the exemption from excise duty is available to "Concrete Mix manufactured at the site of construction for use in construction work at such site" is applicable to "Ready Mix Concrete" manufactured at the site of construction. 3. In this connection a representation has been received from the Indian Ready Mix Concrete association, Mumbai wherein they have stated that Ready Mix Concrete and Concrete Mix are two separate and distinguishable commodities. The Association has requested to clarify this point so as to avoid divergent practices. 4. The Board has examined the matter and is of the view that Ready Mix Concrete and Concrete Mix are two separate and distinguishable commodities. Ready Mix Concrete, even if it is manufactured at the site of construction, is chargeable to excise duty @ 13%. under sub-heading No. 3824.20 of Central Excise Tariff Act, 1985. The exemption for concrete mix manufactured at the site of construction for use in construction work at such site available vide S.No. 51 of Notification No. 4/97-CE dated 1.3.1997 is not applicable to Ready Mix Concrete manufactured at the site of construction. 5. All pending disputes/ assessments on the issue may be settled in the light of these guidelines. Sd/- (Mallika Arya) Under Secretary to the Government of India