Cement exemption under Notification No. 4/2006-C.E. applied to 50 kg bags supplied to industrial and institutional consumers.

Interpretation of Notification No. 4/2006-C.E. governed whether cement cleared in 50 kg bags to institutional and industrial consumers qualified under Sl. No. 1B or 1C. The Tribunal noted that the issue turned on the interaction between Sl. No. 1B, Sl. No. 1C, the Explanation defining a mini cement plant, and the Second Proviso to that Explanation. It also referred to an earlier decision and the Board's clarification dated 12-6-08, both supporting coverage under Sl. No. 1B or 1C. On that basis, the notification benefit was admissible and the demand was unsustainable.

---

---

Issues: Whether cement cleared in 50 kg bags to institutional and industrial consumers was eligible for the benefit of Notification No. 4/2006-C.E. under Sl. No. 1B or 1C, having regard to the Explanation and the Second Proviso to Sl. No. 1C.

Analysis: The dispute turned on the construction of Notification No. 4/2006-C.E., particularly the relationship between Sl. No. 1B, Sl. No. 1C, and the Explanation defining a mini cement plant. The Tribunal noted that an earlier decision had already considered the same issue and had held that the goods would be covered under Sl. No. 1B or 1C by virtue of the Second Proviso to the Explanation to Sl. No. 1C. That view had also been supported by the Board's clarification dated 12-6-08 and followed in a later matter involving similar facts.

Conclusion: The benefit of the notification was admissible to the assessee, and the demand could not be sustained.

---