Excise exemption for site-made concrete mix was questioned, prompting reconsideration of its tax treatment by a Larger Bench.

The commentary addresses excise duty liability on concrete mix prepared at the construction site and used in dam construction, against an exemption entry covering concrete mix manufactured and used at the same site. It notes that the Tribunal examined an earlier view treating the material as dutiable, but found on the material before it that concrete mix and ready mix concrete appeared substantially the same for construction purposes. The Tribunal therefore expressed disagreement with the earlier decision and directed that the issue be placed before the President for constitution of a Larger Bench for reconsideration.

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Issues: Whether the dispute concerning excise duty liability on concrete mix prepared at site for use in dam construction required reconsideration in light of the exemption entry for concrete mix manufactured and used at the construction site.

Analysis: The exemption entry covered concrete mix manufactured at the site of construction and used in construction work at the same site. The Tribunal noted that the revenue relied on an earlier decision treating the material as exigible, while the appellant sought to distinguish that view. On examination of the material placed before it, the Tribunal found that concrete mix and ready mix concrete appeared to be substantially the same for construction purposes and expressed inability to agree with the earlier decision. As the issue involved reconsideration of the earlier view, the matter was directed to be placed before the President for constitution of a Larger Bench.

Conclusion: The question was referred for reconsideration by a Larger Bench.

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