Concessional excise exemption for cement sales to industrial and institutional customers upheld, with duty demand and penalties set aside.

Cement cleared in 50 kg bags to builders, hotels, hospitals and government or manufacturing entities was treated as sales to industrial or institutional customers, making the concessional exemption available under the relevant notifications. Applying its earlier decision in the same appellant's matter, the Tribunal held that such clearances qualified for Notification No. 4/2006-CE and Notification No. 12/2012-CE. On that basis, the duty demand was not sustainable, and the associated interest and penalties were set aside.

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Issues: Whether cement cleared in 50 kg bags to builders, hotels, hospitals and government or manufacturing entities qualified as sales to industrial or institutional customers so as to avail the concessional rate under the relevant exemption notifications.

Analysis: The Tribunal noted that the same question had already been decided in the appellant's own earlier matter and that the buyers in question fell within the category of industrial or institutional customers. It was held that clearances of cement in 50 kg bags to such buyers were eligible for the benefit of Notification No. 4/2006-CE dated 01.03.2006 and Notification No. 12/2012-CE dated 17.03.2012. The Tribunal therefore found that the demand of duty could not be sustained.

Conclusion: The issue was answered in favour of the assessee, and the duty demand, interest, and penalties were set aside.

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