Cement in 50 kg bags to institutional buyers qualifies for exemption under Notification No. 4/2006-CE, defeating duty demand.

Cement cleared in 50 kg bags to builders, developers, industrial users and similar institutional or industrial buyers was treated as eligible for the benefit of Notification No. 4/2006-CE dated 01.03.2006. The Tribunal followed its earlier view that such clearances fall within the notification, so the demand based on denial of that exemption and on retail-pack MRP treatment could not survive. The duty demand was therefore not sustainable, and the impugned order was set aside with consequential relief.

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Issues: Whether cement cleared in 50 kg bags to institutional or industrial buyers was entitled to the benefit of Notification No. 4/2006-CE dated 01.03.2006 and whether the duty demand was sustainable.

Analysis: The dispute turned on the nature of the buyers and the character of the clearances. The Tribunal followed its earlier view that cement supplied in 50 kg bags to builders, developers, industrial users, and similar buyers answering to the description of institutional or industrial consumers falls within the benefit of the notification. Once such clearances are treated as sales to institutional or industrial customers, the basis for demanding duty on the footing that the goods were liable to retail-pack MRP treatment does not survive. The issue had already been treated as settled and requiring no further reconsideration.

Conclusion: The clearances qualified for the benefit of Notification No. 4/2006-CE dated 01.03.2006, and the duty demand was not sustainable.

Final Conclusion: The impugned order was set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: Cement cleared in 50 kg bags to institutional or industrial customers is eligible for the exemption benefit under Notification No. 4/2006-CE, and a duty demand founded on denial of that benefit cannot be sustained.

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