Cement exemption for bagged clearances to institutional buyers upheld under the notification, with demand and penalties set aside.

Notification No. 04/2006-CE was held applicable to cement cleared in 50 kg bags to builders and other industrial or institutional consumers, including institutional buyers, where the Tribunal found no basis to distinguish such clearances from those covered by its earlier identical ruling. The amended exemption was therefore available despite sale in individual bags. On that footing, the demand, interest and penalties were set aside.

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Issues: Whether the benefit of Notification No. 04/2006-CE dated 01.03.2006 was available to cement cleared in 50 kg bags to builders and other industrial or institutional consumers.

Analysis: The dispute turned on whether clearances of cement in bags to builders and similar buyers could be denied the concessional treatment under the notification. The Tribunal followed its earlier decision on an identical issue and held that the exemption under Notification No. 04/2006-CE, as amended, was available for clearances to institutional buyers even where the cement was sold in individual bags. No distinction was found warranting a departure from the earlier view.

Conclusion: The benefit of the notification was held to be available to the assessee, and the demand, interest, and penalties were set aside.

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