Direct sales of cement can qualify for concessional duty when no intermediary is involved and resale conditions are absent.

Cement cleared directly to consumers, including individuals, government agencies, builders and institutions, was treated as eligible for concessional duty under Notification No. 4/2007-C.E. The direct clearance pattern meant there was no intermediary or retail sale agency involved, so the requirement of a retail sale under Rule 2(q) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 was not attracted. Where the goods were sold directly and marked with an indication such as not for resale, the concessional benefit remained available.

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Issues: Whether cement sold directly to consumers without an intermediary was entitled to concessional duty under Notification No. 4/2007-C.E. and whether such clearances could be denied the benefit on the ground that they were not retail sales within Rule 2(q) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977.

Analysis: The clearance pattern showed direct sales to consumers, including individuals, government agencies, builders and institutions, without routing the goods through a retail sale agency or other intermediary. In such circumstances, the requirement of a retail sale was not attracted. The relevant rule defining retail sale did not govern these direct transactions, and the Tribunal followed its earlier view that where cement is cleared directly, without marketing of retail sale price and with an endorsement such as not for resale, the concessional benefit remains available.

Conclusion: The direct sale to individuals without an intermediary was held entitled to the concessional rate of duty under the notification.

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