Concessional tax on fly-ash cement applies by product character, not trader records, when composition is proved.

Concessional tax under the fly-ash cement notification was held to depend on the goods and their disclosed composition, not on the identity of the claimant. Where the cement was shown to contain fly ash above the prescribed threshold and its character remained unchanged through the retail chain, the reduced rate continued to apply. The record-keeping requirement was treated as practically applicable to the manufacturer rather than a trader, and the absence of accounts alone could not defeat the concession when no adverse material contradicted the declared fly ash content. The assessee was therefore entitled to the concessional rate of tax.

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Issues: Whether a trader purchasing cement containing fly ash was entitled to the concessional rate of tax under Notification No. 592 dated 27.02.1998 notwithstanding non-maintenance of the records contemplated in the notification.

Analysis: The rebate under the notification was held to be linked to the goods and not to the person claiming it. Once the goods were shown to have been manufactured with fly ash content exceeding the prescribed threshold and the identity of the goods remained unchanged, the concessional rate continued to apply even if the goods passed through a retail chain. The record-keeping condition was found to be one that could realistically be applied to the manufacturer, not to a trader, and no adverse material was produced to dispute the declared fly ash content. The revenue's objection rested only on absence of accounts, which was insufficient to deny the concession.

Conclusion: The assessee was entitled to the reduced rate of tax, and the revision was without merit.

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