Taxability on Ready Mix Concrate

[Hiren Patel]

In the case of M/s Larsen & Toubro Ltd. & Another, ECC Construction Group Versus Commissioner of Central Excise, Hydrabad 2015 (10) TMI 612 - Supreme Court, SC has decided that RMC and CM are different product and thus RMC is not covered under notification no 4/1997 so it is liable for tax. So weather RMC made at site for the construction work of Bridge and road is taxable?

[CS RAHUL AGARWAL]

Hi,

Going thru judgement, In simplex Infrastructure case wherein both tribunal as well as P&H HC have held RMC &CM to be same article and covered by the NN. 41/97, the SC have set aside both the order after pronouncing its final observation. The relevant para 21 is reproduced for ready reference:

In this backdrop, the only question is as to whether RMC manufactured and used at site would be covered by notification. Answer has to be in the negative inasmuch as Notification No. 4 dated March 01, 1997 exempts only 'Concrete Mix' and not 'Ready Made Mixed Concrete' and we have already held that RMC is not the same as CM.

So, the apex court have clearly rule out that RMC manufactured at same site and used in same site shall not be covered in NN. 41/97. The simplex case where contrary view was taken has been remanded back to adjudicating authority to be decided in the light of SC pronouncement in instant case. The relevant para 24 read as:

In the instant case, the CESTAT has held that as the RMC was manufactured at site and was used in construction work at site, the same was covered vide Notification No.41/97-CE. This view of the Tribunal has been upheld by the High Court thereby dismissing the appeal of the Revenue. Having regard to our discussion in the case of L&T, this view has to be rejected. we remit the case back to the adjudicating authority to look into the matter afresh from this angle, keeping in view our observations in this judgment.

Hope it is cleared now. RCM & CM are different goods and RMC at site shall not be covered in NN. 41/97 liable to duty even manufactured at site of its use.

AI Summary

Taxability of Ready Mix Concrete: RMC not exempt under the concrete-mix notification and is taxable.
Ready Mix Concrete (RMC) is distinct from Concrete Mix (CM) and Notification No. 4 dated March 01, 1997, which exempts only 'Concrete Mix', does not cover 'Ready Made Mixed Concrete'. Prior orders applying the notification to RMC manufactured and used at the same site were set aside and remanded to the adjudicating authority to be reconsidered; RMC manufactured and used on-site is therefore liable to central excise duty.