Cement clearances to builders as institutional consumers qualified for exemption under the relevant notifications.

Clearance of cement to builders and construction companies was treated as supply to institutional or industrial consumers, so the goods were not regarded as retail-sale packaged commodities requiring price declaration. On that basis, the clearances qualified for the exemption or concessional treatment under Notification No. 04/2006-CE and Notification No. 12/2012-CE. The stated ratio is that cement supplied to builders and construction companies in that capacity falls within the benefit available for goods other than those cleared in packaged form under the relevant notifications.

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Issues: Whether clearance of cement to builders and construction companies qualified as clearance to institutional or industrial consumers so as to attract the benefit of Notification No. 04/2006-CE dated 01/03/2006 and Notification No. 12/2012-CE dated 17/03/2012.

Analysis: The dispute turned on whether the recipients of cement used in construction activity fell within the category of institutional or industrial consumers, in which case the goods would be treated as not requiring retail sale price declaration under the relevant packaged commodity rules. The Tribunal accepted the view that builders and construction companies answered that description and that the clearances were therefore eligible for treatment as goods other than those cleared in packaged form. On that basis, the exemption / concessional rate under the cited notifications was available.

Conclusion: The issue was decided in favour of the assessee, and the benefit of the notifications was held admissible.

Ratio Decidendi: Where cement is cleared to builders and construction companies as institutional or industrial consumers, the clearances are eligible for the exemption / concessional treatment available to goods other than those cleared in packaged form under the relevant notifications.

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