Concessional duty on packaged cement for institutional consumers upheld where supplies to builders fell outside retail-sale restrictions.

Cement cleared in packaged form for institutional consumers was considered eligible for the concessional duty rate under Notification No. 4/2006-C.E., as amended, where the goods were not from a mini cement plant and satisfied the prescribed retail sale price conditions. The dispute focused on whether supplies to construction companies could be treated as institutional consumption rather than ordinary retail sale. The construction sector was treated as a service industry, and cement used for that sector was viewed as outside the retail-sale mischief. Following the earlier coordinate Bench view, the exemption was held applicable and denial of the concession was unsustainable.

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Issues: Whether cement cleared in packaged form for institutional consumers and not covered by the mini cement plant category was eligible for the concessional rate of duty under Notification No. 4/2006-C.E., as amended by Notification No. 4/2007-C.E.

Analysis: The relevant entry in the notification granted a concessional rate to goods of the description falling under the specified tariff heading and, in particular, to cement not covered by the mini cement plant category and cleared in packaged form within the prescribed retail sale price parameters. The dispute turned on whether clearances to construction companies could be treated as clearances to institutional consumers. The construction sector was treated as a service industry, and the goods were intended for use in that sector rather than for ordinary retail sale. The earlier coordinate Bench view that cement supplied for builders/institutional use was outside the retail-sale mischief and within the protective scope of the exemption was followed.

Conclusion: The appellant was entitled to the concessional rate of duty under the notification, and denial of the benefit was unsustainable.

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