Concessional excise duty on packed cement for construction consumers upheld where institutional use and notification conditions were satisfied.

Cement cleared in packed form to construction industry consumers was found eligible for the concessional duty benefit under the notification because construction was treated as a service industry for the relevant fiscal purpose and the exclusion for packaged commodities meant for institutional or industrial consumers was applied on that basis. The Tribunal's view, supported by earlier co-ordinate Bench decisions, accepted that the assessee met the other notification conditions and that packing alone did not defeat the claim on the facts found. The revenue's challenge therefore failed, and concessional excise treatment was retained.

---

---

Issues: Whether cement cleared in packaged form to construction industry consumers qualified for the concessional rate of duty under the relevant notification by treating construction as a service industry and by applying the exclusion for packaged commodities meant for institutional or industrial consumers.

Analysis: The notification was applied in the context of clearances made to institutional consumers. The construction activity was treated as a service industry in the relevant commercial and fiscal understanding, and the Tribunal's view was consistent with earlier co-ordinate Bench decisions. The assessee had satisfied the other conditions for the benefit under the notification, and the mere fact that the cement was packed did not defeat the claim on the facts found by the Tribunal.

Conclusion: The assessee was held entitled to the concessional rate of duty under the notification.

Final Conclusion: The revenue's challenge to the Tribunal's grant of notification benefit failed, and the assessee retained the concessional duty treatment.

Ratio Decidendi: Where cement is cleared to institutional consumers in circumstances covered by the notification and the construction sector is treated as a service industry, the concessional excise benefit cannot be denied merely because the goods are in packed form.

---