Cement exemption for industrial bulk bags applies to institutional sales without retail price, while individual sales remain dutiable.

Cement cleared in 50 kg bags for bulk supply to institutional or industrial consumers, marked for industrial use and without a retail sale price, fell within Notification No. 04/2006-CE (Sl. No. 1C). The applicable exemption was treated as covering such institutional clearances on the basis of the prior binding view on the same notification and similar supplies, so the demand and related interest on those sales could not survive. Duty and interest, if any, remained payable on sales to individuals. Penalties were set aside, and the matter was remanded only for recomputation of the surviving duty and interest liability.

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Issues: Whether cement cleared in 50 kg bags, marked for industrial use and without retail sale price, and sold in bulk to institutional or industrial consumers, was entitled to the benefit of Notification No. 04/2006-CE (Sl. No. 1C).

Analysis: The applicable exemption was held to cover cement bagged in 50 kg bags and supplied in bulk to institutional or industrial consumers where the bags were intended for bulk use and no retail sale price was printed. The decision followed the prior binding view on the same notification and same type of clearances. On that basis, the demand and interest relatable to such institutional sales could not survive, while the duty and interest, if any, on sales to individuals remained payable. Penalties were also set aside, and the matter was remitted only for quantification of the surviving liability.

Conclusion: The assessee was held entitled to the exemption for supplies to institutional consumers, the demand on individual sales was upheld, penalties were set aside, and the matter was remanded for limited recomputation of duty and interest.

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