Notification benefit for cement sold to industrial and institutional consumers upheld; duty demand and penalty were set aside.

Cement cleared in 50 kg bags to industrial and institutional consumers was held eligible for the benefit of Notification No. 4/2006-CE because such clearances were treated as covered by Sl. No. 1B or 1C, read with the second proviso to the Explanation to Sl. No. 1C. The Tribunal relied on its earlier decision and accepted the Board's clarification as supporting this view, while rejecting the contrary argument based on the absence of printed retail sale price for such sales. On that basis, the duty demand and equal penalty were set aside.

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Issues: Whether cement cleared in 50 kg bags to industrial/institutional consumers was entitled to the benefit of Notification No. 4/2006-CE, and whether the duty demand and equal penalty were sustainable.

Analysis: The Tribunal followed its earlier decision holding that the benefit of the notification was available to goods cleared to industrial/institutional consumers. It accepted that such clearances fell within the scope of Sl. No. 1B or 1C of Notification No. 4/2006-CE by virtue of the second proviso to the Explanation to Sl. No. 1C. The Board's clarification was treated as supporting the assessee's case, and the contrary view based on the requirement of printed retail sale price was rejected in light of the nature of the consumers to whom the goods were sold.

Conclusion: The assessee was held entitled to the notification benefit, and the demand and penalty were set aside.

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