Site-based concrete mix exemption applies despite ready mix nomenclature when project use and notification conditions are satisfied.

A beneficial exemption for concrete mix manufactured at the construction site applies where a batching plant is set up for a specific project and the mix is used only for that work. The description "ready mix concrete" does not by itself defeat the exemption when the product, its use, and the site-based conditions fall within the notification. The distinction based on different commercial or IS-standard nomenclature is insufficient without material evidence showing that the product is outside the exempt entry. The result is that a site-specific concrete mix satisfying the notification conditions remains eligible for exemption.

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Issues: Whether ready mix concrete manufactured in a batching plant located within or in the vicinity of the construction site was eligible for exemption under Notification No. 4/2006-CE dated 01.03.2006 for "concrete mix manufactured at site of construction for use in construction work at such site".

Analysis: The exemption entry covered concrete mix under Chapter 38 and was not confined to any particular sub-heading. The distinction sought to be drawn by the Revenue between "concrete mix" and "ready mix concrete" based on different IS standards was not accepted in the absence of material evidence showing that the product fell outside the notification. The factual finding that the plant was established for the specific project and the mix was used only for that construction supported the view that the product satisfied the site-based exemption condition. A beneficial exemption notification cannot be denied on a mere change in nomenclature when the substance of the product and its use fall within the entry.

Conclusion: The exemption was held applicable and the Revenue's challenge failed.

Final Conclusion: The demand was not sustainable and the Revenue's appeals were rejected.

Ratio Decidendi: Where an exemption entry covers a product by description and use, the benefit cannot be denied merely because the same product is described by a different commercial name, if the evidence shows that it satisfies the notification conditions.

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