Industrial or institutional consumer exclusion for cement supplies removes retail sale price declaration and defeats excise demand.

Direct supply of cement in 50 kg bags to builders, developers, contractors and ready mix concrete manufacturers was treated as falling within the industrial or institutional consumer exclusion under the packaged commodities rules. On that reasoning, retail sale price declaration was not required for such clearances, because builders and developers were treated as institutional consumers and ready mix concrete manufacturers as industrial consumers. The excise demand founded on non-declaration of retail sale price was therefore held unsustainable, the impugned orders were set aside, and the appeals succeeded on merits.

---

---

Issues: Whether cement cleared in 50 kg bags directly to builders, developers, contractors and ready mix concrete manufacturers was covered by the exclusion for industrial or institutional consumers, so that retail sale price declaration was not required and the differential excise demand was unsustainable.

Analysis: The exclusion in the packaged commodities rules applies to goods meant for industrial or institutional consumers, and the definitions include service institutions and industrial users buying directly from the manufacturer. The earlier Tribunal view treated builders and developers as institutional consumers because construction is a service activity, and treated ready mix concrete manufacturers as industrial consumers because cement is used in manufacture. Following that reasoning, supplies to similarly placed purchasers could not be treated as ordinary retail clearances requiring retail sale price declaration.

Conclusion: The clearances were held to be supplies to industrial or institutional consumers, the demand based on non-declaration of retail sale price was held unsustainable, and the assessee succeeded.

Final Conclusion: The impugned orders were set aside and the appeals were allowed on merits.

Ratio Decidendi: Direct supply of cement to builders, developers and ready mix concrete manufacturers falls within the industrial or institutional consumer exclusion under the packaged commodities rules, so retail sale price declaration is not required and duty demand based on its absence cannot survive.

---