Site-manufactured concrete mix qualifies for excise exemption when used in the same construction project.

Concrete mix and ready mix concrete manufactured at the construction site and used in the same project fell within Serial No. 51 of Notification No. 4/97-C.E. The exemption, issued under Section 5A of the Central Excise Act, 1944, was read broadly to cover concrete mix produced at the site of construction for use at that site, without a narrow restriction to a particular sub-heading. The fact that the material was transported within the project area did not take it outside the entry. The CESTAT therefore held that the exemption applied to ready mix concrete made at the construction site, in favour of the assessee.

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Issues: Whether concrete mix / ready mix concrete manufactured at the site of construction and used in the same construction work was entitled to exemption under Serial No. 51 of Notification No. 4/97-C.E.

Analysis: The exemption under Serial No. 51 covered concrete mix manufactured at the site of construction for use in construction work at such site. The notification was issued under Section 5A of the Central Excise Act, 1944, and the entry referred broadly to Chapter 38 without confining the exemption to a narrow sub-heading. On the facts, the product was classifiable under Chapter 38 and the reasoning accepted that ready mix concrete manufactured at the site of construction would not be excluded merely because it involved transport within the project area. The entry was therefore read as covering all concrete mixes manufactured at the construction site for use at that site.

Conclusion: The exemption applied and the reference was answered in favour of the assessee.

Ratio Decidendi: Where a notification exempts concrete mix manufactured at the site of construction for use at that site, the exemption extends to ready mix concrete produced at the construction site itself, and the entry should not be read narrowly to exclude it.

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