Excise duty tariff on Ready Mix Concrete - Reg

[Madhu Srinivas]

Dear Sir,

In which notification issued central excise, the clear tariff rate and duty of Ready Mix concrete is mentioned as 2%.

Kindly provide the notification no.

Regards,

Madhu Srinivas

[Rajagopalan Ranganathan]

Sir,

See Sl. No. 46 of Notification No. 01/2011-CE dated 1.3.2011 as amended.

[DR.MARIAPPAN GOVINDARAJAN]

3824 50 10 - Ready mix concrete

[Madhu Srinivas]

Dear Sir,

Only in the above said notification it was stating as Ready mix concrete which was amended on 17.03.2012. But As per Supreme court order, declares that on October 06.2015, the READY MIX CONCRETE & CONCRETE MIX are 2 different products.

How can i consider this 2% is excisable on READY MIX CONRETE in earlier period?

[Rajagopalan Ranganathan]

Sir,

Concrete mix is classifiable under Chapter 38 of first schedule to Central Excise Tariff Act, 1985 (CETA, 1985). This is exempted if manufactured at the site of construction for use in construction work at site vide Sl. No. 144 of Notification No. 12/2012-CE dated 17.3.2012 as amended. Ready mix concrete is a different products since in addition to cement, sand and water it contains some binders also. This is chargeable to 2% duty under Notification No. 1/2011-CE dated 1.3.2011 as amended. It is classifiable under sub-heading No. 3824 50 10 of first schedule to CETA, 1985. If I remember correct the appellant before Supreme Court argued that concrete mix and Ready mix concrete are the same products and hence eligible to nil rate of duty. This view was negatived by the Supreme Court.

AI Summary

Classification of ready mix concrete as distinct from concrete mix makes it subject to excise duty rather than site exemption. Ready Mix Concrete is distinguished from concrete mix by the presence of additional binders and is classifiable under the tariff provision identifying ready mix concrete, attracting excise duty under Notification No. 1/2011-CE (as amended); by contrast, concrete mix manufactured at the construction site for use there is exempt under Notification No. 12/2012-CE (as amended).