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TMI Blog2017 (9) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... e Department Shri Bibhas Saha, Dy. General Manager, for the Respondent ORDER Per V. Padmanabhan The present appeal has been filed against the Order-in-Appeal No.136-137/RAN/2013 dt.23.07.2013 passed by Commr.(Appeals) of Central Excise S. Tax, Ranchi. 2. The respondent proposed to undertake the construction activity in their factory premises and for this purpose, they entered into an agreement with M/s Sundaram Abasan Private Ltd. for manufacture of Ready Mix Concrete (RMC) in their factory premises, who in turn made agreement with M/s ACC Concrete Ltd. to produce RMC by installing the batching plant in the appellants factory premises. The Department took a view that the concrete produced and used within the factory premises of the appellant, were not Concrete Mix, which was exempted from payment of duty under Notification No.04/97-CE dated 01.03.1997. On the other hand, Revenue felt that it was Ready Mix Concreteclassifiable under Central Excise Tariff heading No.3824 and chargeable to Central Excise duty. Accordingly, duty amounting to ₹ 29,71,616/- was paid by the respondent. However, subsequently, refund claim was filed by the respondent, which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.368/1/98-CX dt. 06.01.1998, as follows : (4) Ready Mix Concrete is thus an excisable product which has a separate tariff entry under sub-heading 3824.20 of the Central Excise Tariff Act, 1985. It is also known under the Indian Standard IS : 4926-1976, which for the purposes of that standard defines Ready Mix Concrete as concrete delivered at site or into the purchasers vehicle in a plastic condition and requiring no further treatment before being placed in the position in which it is to stay and harden. Ready Mix Concrete attracts duty at the rate of 13% prior to 21.10.1997. Subsequent to 21.10.1997 vide Notification No.65/97-CE dated 21.10.1997, the duty on Ready Mix Concrete classified under sub-heading 3824.20 has been reduced to 8%. (5) A doubt has been raised as to whether concrete mix manufactured at site using large mechanical devices is a form of ready mix concrete. (6) The matter has been examined and concrete mix implies the conventional method of concrete production conforming to the ISI Standard 456-1978, which is produced and used at the site of construction. It is thus concrete mixture, manufactured at the site of construction which is fully exempt v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Tribunal that the assessee always accepted that what was being produced was RMC and claimed exemption only on the ground that it was manufactured at the site of construction and captively used. Even in the writ petition filed by the assessee in the High Court of Madras [2006 (198) E.L.T. 177 (Mad.)], the assessee itself proceeded on the basis that what was manufactured was RMC inasmuch as in Para 3 of this writ, it was mentioned : the writ petitioner had set up a Unit for manufacture of Ready Mix Concrete at Manapakkam.Paras 3 and 4 reads as under : 3. The writ petitioner had set up an Unit for manufacture of Ready Mix Concrete at Manapakkam and has registered itself with the Central Excise. According to the respondents, the Ready Mix Concrete manufactured by the petitioner is not meant to be used at the site itself and they have to be cleared and sold to various other construction companies. The product is transported through the vehicle fitted with mixing drum specifically designed to carry Ready Mix Concrete from the petitioners unit to various concrete sites. The product is marketable, transportable and eventually available for sale. 4. The product c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets or hardens within two to 12 hours after mixing and continue to gain strength within months or even years. (ii) Ready Mix Concrete refers to concrete that is delivered to the customer in a freshly mixed and non-hardened state. Due to its durability, low cost and its ability to be customized for different applications, Ready Mix Concrete is one of the worlds most versatile and popular building materials. (iii) Admixtures are generally products used in relatively small quantities to improve the properties of fresh and hardened concrete. They are used to modify the rate of setting and strength, especially during solid and cold weather. The most common, is an air-entraining agent that develops millions of tiny holes in the concrete, which imparts the durability to concrete in freeing and thawing exposure. Water reducing Admixtures enable concrete to be placed at the required consistency while minimizing water used in the mixture, thereby increasing the strength and improving durability. A variety of fibers are incorporated in the concrete to control or improve aberration and impact resistance. 20. After referring to some text as well, the adjudicating authority broug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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