Excise on Concrete Mix

[Nitin Singh]

A work contractor construct building for his contractee. For that work contractor install a Concrete mix plant on a place other than such building site. He has bring Concrete mix through Transit mixer from Concrete Mix Plant to Building site. All Concrete produce by Concrete Mix Plant is used by contractor in such building site only. Now in case Work contractor will liable to pay Excise duty on Concrete Mix or Not? If yes, please refer come case law in which work contractor pay excise on Concrete Mix of his Concrete Mix Plant.

[Mritunjay Kumar]

As per my view, Yes, the contractor will be liable to pay excise duty as the exemption Notification No. 4/97 dt. 1-3-97 applies to the the circumstances when concrete mix is prepared at the site. As you have clearly mentioned that site of building is different from the site of manufacture of concrete mix. Therefore, in this case exemption provided by the said Notification is not available. There are various case laws regarding this matter. You can refer the case law decided by Hon'ble supreme court of India in the case of COMMISSIONER OF C. EX., BELAPUR Versus SIMPLEX INFRASTRUCTURES LTD. [2008 (4) TMI 102 - SUPREME COURT].

AI Summary

Excise liability on off-site manufactured concrete arises when concrete is produced away from the construction site and transported for use. A contractor manufacturing concrete at an off-site concrete mix plant and transporting it by transit mixers to the building site is not eligible for the site-preparation exemption and is therefore liable to pay excise duty on the concrete; the exemption applies only when concrete is prepared at the construction site.