Concessional duty on cement for self-use and free issue upheld where MRP-marked bags were not sold in retail market.

Cement cleared in MRP-marked bags for self-consumption within the factory and for free issue to a contractor for construction work was held eligible for concessional duty under Notification No. 4/2006-CE. CESTAT Chennai followed its earlier view and applied judicial discipline, holding that the benefit could not be denied merely because the goods were not sold in the ordinary retail market. The demand was therefore not sustainable, as the mode of use did not exclude the clearances from the notification's concessional treatment.

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Issues: Whether cement cleared for self-use and free issue to a contractor was eligible for concessional rate of duty under Notification No. 4/2006-CE dated 01.03.2006.

Analysis: The appeal turned on the character of the clearances. The Tribunal noted that the same controversy had already been examined in an earlier decision applying the notification to cement cleared in packs bearing MRP for industrial, institutional, and self-consumption clearances. Following that view and the principle of judicial discipline, the Tribunal held that cement used for self-consumption within the factory and cement issued free of cost to a contractor for construction work could not be denied the benefit merely because the goods were not sold in the ordinary retail market.

Conclusion: The clearances in question were eligible for the concessional duty treatment under the notification, and the demand was not sustainable.

Ratio Decidendi: Cement cleared in MRP-marked bags for self-use or free issue for construction within the assessee's premises is not excluded from concessional duty benefit merely because there is no retail sale.

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