Industrial consumer cement clearances in 50 kg bags remain exempt despite no MRP declaration under the packaged commodities rules.

Packaged cement cleared in 50 kg bags to industrial or institutional consumers for their own use, and not for resale, falls within the statutory exclusion from MRP declaration requirements. On that basis, the exemption notification applicable to such clearances remains available, because the exclusion under the packaged commodities rules operates independently of the quantity condition. The Tribunal followed earlier decisions confirming that cement supplied to industrial or institutional consumers need not bear MRP and continues to qualify for concessional duty treatment. The refund eligibility granted by the Commissioner (Appeals), subject to verification of unjust enrichment, was therefore sustained.

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Issues: Whether cement cleared in 50 kg bags to industrial or institutional consumers, for their own use and not for resale, was eligible for the concessional rate of duty under the relevant exemption notification notwithstanding the absence of MRP declaration.

Analysis: The notification benefit was examined in the light of the exclusion carved out in the packaged commodities rules for commodities meant for industrial or institutional consumers. The Tribunal noted that such consumers are defined as direct buyers from manufacturers for use in industry or service activity, and that the exclusion operates independently of the quantity clause. The Tribunal followed earlier decisions holding that cement cleared in 50 kg bags to such consumers is not required to bear MRP and remains eligible for the exemption. Consistent view had already been taken that the notification covers such clearances and that the department's contrary view was not sustainable.

Conclusion: The clearance of cement to industrial or institutional consumers was eligible for the exemption and concessional duty benefit; the department's appeal failed.

Final Conclusion: The order of the Commissioner (Appeals) granting refund eligibility, subject to verification of unjust enrichment, was sustained and the departmental appeal was dismissed.

Ratio Decidendi: Where packaged cement is cleared in 50 kg bags to industrial or institutional consumers for their own use, the statutory exclusion from MRP requirements applies and the exemption notification covering such clearances is available.

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