Taxability of ready mix concrete RMC

[NANDKUMAR SAGWEKAR]

Dear All learned members of this portal

The article ready mix concrete ( RMC )  is falling under chapter 3824 50 10 and tariff rate of duty is 6%. The RMC is also covered under entry no. 46 of Noti.No.1/2011 C.E. and rate of duty is 2% (w.e.f. 17/03/2012 ) without Cenvat credit facility .The RMC is also covered under ANNEXURE to Noti.No. 8/2003 (SSI Exemption ) entry no. ( (xxiii ). 

Whether a manufacturer of RMC is eligible to avail the SSI exemption during current F.Y.2013-14 for clearances upto Rs.150 Lakhs  and start to pay the duty @ 2% after crossing the limit of Rs.150 Lakhs ?The previous F.Y. GTO is NIL as he is new manufacturer ,started manufacturing operations in April 2013 and does not have any other manufacturing unit. 

OR he has to pay the normal rate of duty @6% as per tarriff after crossing the limit of Rs.150 Lakhs ?

That means simultaneous av ailment  of SSI exemption upto Rs.150 Lakhs and thereafter paying duty @ 2% whether possible in case of  RMC is my querry ?

 Thanks

 ANAND MANOHAR SHEMBEKAR

CELL 7744974915 

[Surender Gupta]

Notification no. 1/2011 CE and 2/2011 CE both dated 1.3.2011 are independent to Notification no. 8/2003 dated 1.3.2008 of Central Excise.

It means after crossing the turnover of Rs. 150 lakhs you may avail the benefit of Notification no. 1/2011 CE or 2/2011 CE CE as per your option with or without availing Cenvat Credit if otherwise the conditions are complied with.

AI Summary

SSI exemption then option to adopt concessional duty notifications, selectable with or without Cenvat credit. The RMC manufacturer may use the SSI exemption up to the turnover ceiling and, after crossing that ceiling, may elect to avail the concessional duty notification(s) independently. The SSI exemption and the concessional notifications operate independently, and after crossing the SSI turnover limit the manufacturer may choose the concessional notification with or without Cenvat credit provided the conditions of the chosen notification are complied with.