Construction excise exemption may cover an approved pre-casting yard used solely for the project, despite distance from the worksite.

Construction-related central excise exemptions for goods manufactured at the "site" of construction can extend to a pre-casting yard approved under the contract and used solely for the project. The notifications were read to include premises made available for manufacture by specific contractual arrangement, so the expression "site" was not confined to the immediate project location. Physical distance from the metro worksite, by itself, did not defeat exemption where the yard formed part of the contractual arrangement and the goods were exclusively used in the construction work.

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Issues: Whether reinforced concrete girders manufactured at a pre-casting yard about 6 km away from the metro project site were eligible for exemption under the applicable central excise notifications, where the yard had been approved by the project principal and the goods were used exclusively for the construction work.

Analysis: The applicable notifications exempt goods manufactured at the site of construction for use in construction work at such site. The later notification expressly explained that "site" includes any premises made available for manufacture by a specific mention in the contract or agreement, provided the goods are solely used for the construction work. The contract required the contractor to make its own arrangements for the casting yard, while the project principal approved the pre-casting yard through correspondence that formed part of the contractual arrangement. The expression "site" was therefore not to be given a restrictive meaning, and distance from the project location by itself could not defeat the exemption where the premises were approved for the work and the goods were exclusively used in the project.

Conclusion: The goods were held eligible for exemption under the notifications, and the demand based on denial of the exemption was unsustainable.

Ratio Decidendi: For construction-related excise exemptions, premises approved under the contract and used solely for the construction work may qualify as the "site" of construction, and physical distance from the project site alone does not disentitle the assessee from the exemption.

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