Site-based exemption for construction goods upheld where slabs made near one bridge were used along the same railway line.

Site-based exemption under Notification No. 6/2000 applied to prestressed sleeper slabs manufactured near one bridge and used in other bridges forming part of the same railway line, because the goods were produced at the site for use in the construction work at that site. The notification did not require that the goods be consumed only in the exact bridge where they were manufactured, nor did it restrict exemption to supplies made only to the manufacturing contractor. On that basis, the exemption was available and the demand, penalty and confiscation order could not be sustained.

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Issues: Whether the prestressed sleeper slabs manufactured near one bridge and supplied for use in other bridges forming part of the same railway line were covered by the site-based exemption under Notification No. 6/2000 dated 1-3-2000, and whether supply to other contractors denied the exemption.

Analysis: The exemption applied where goods were manufactured at the site of construction for use in the construction work at that site. The fact that the slabs were manufactured near one bridge and used in other bridges along the same railway line did not take the goods outside the exemption. The notification also did not impose any restriction that the goods must be supplied only to the contractor who manufactured them. Once the goods were manufactured at the site for use in the construction work, the condition of the notification stood satisfied.

Conclusion: The appellants were entitled to the exemption and the demand, penalty, and confiscation order could not survive.

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