TaxTMI 
TaxTMI 
2017 (11) TMI 474
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....fter referred to as "the officers') indicated that M/s DLFPL were evading Central Excise duty in the guise of availing the benefit of notification no. 04/2006-CE dated 01.03.2006 (S.No. 74) wherein exemption is available in respect of "concrete mix" manufactured at the site of construction. However, RMC and concrete mix are entirely different products distinguished on the basis of method of production, quality control, shelf life, ISO standards, marketability and are known differently in common trade parlance, RMC is a mixture of cement, sand, aggregates and chemicals in fixed proportions. The process of manufacturing of RMC involves Central Batching Plant in which all aggregates are weighed and batched by electrical control panels and water is fed though flow meters. The shelf life of this mixture is increased by addition of chemicals. 3. DGCEI carried out investigations at various locations where appellant was manufacturing "Ready-Mix-Concrete" (RMC). Upon conclusion of investigation, show cause notice dated 30/09/2013 was issued to the appellant to demand Central Excise Duty. Vide the impugned order duty demands were confirmed and penalties imposed on the appellant as per tab....
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....f exemption should be extended to them. They relied on several judicial pronouncements including following :- i. CCE v. Chief Engineer, Ranjit Sagar Dam, 2007 (217) ELT 345 (P&H). ii. Larsen and Toubro Limited v. CCE, 2006 (198) ELT 177 (Mad.) 7. Ld. Counsel also submitted that even if the appellant is held as eligible for the benefit as above, the demand in this case cannot be confirmed beyond the normal time limit in as much as classification and duty ability of "Ready-Mix-Concrete" was the subject matter of numerous litigation and hence, the appellant had a bonafide belief that no duty was payable on such RMC when manufacture at the site of construction. 8. The Ld. DR justified the impugned order. He submitted that the Hon'ble Supreme Court in the case of Larsen and Toubro Ltd. v. CCE, 2015 (324) ELT 646 (SC) has decided the issue in favour of Revenue. The Apex Court has held that "Ready-Mix-Concrete" is different from Concrete mix and hence "Ready-Mix-Concrete" will not be entitled to benefit of Notification No. 4/2006 as held by the Apex Court. 9. After hearing both sides and on perusal of record, we find that the appellant have set up plants in various sites fo....
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....lished case-laws on the subject it is necessary to look for the meaning of this expression as understood in the market viz., as understood by the people who buy and sell this commodity. In this connection it would be relevant to refer to the following excerpts from an article - what is ready mix concrete, appearing in internet website of National Ready Mix Concrete Association, USA :- (i) Concrete, in its freshly mixed state, is a plastic workable mixture that can be cast into virtually any desired shape. It starts to stiffen shortly after mixing, but remains plastic and workable for several hours. This is enough time for it to be placed and finished. Concrete normally sets or hardens within two to 12 hours after mixing and continue to gain strength within months or even years. (ii) Ready Mix Concrete refers to concrete that is delivered to the customer in a freshly mixed and non-hardened state. Due to its durability, low cost and its ability to be customized for different applications, Ready Mix Concrete is one of the world's most versatile and popular building materials. (iii) Admixtures are generally products used in relatively small quantities to impr....
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....e Mix" and not "Ready Made Mixed Concrete" and we have already held that RMC is not the same as CM. 22. In Simplex Infrastructures Limited case, this Court had not delved into the issue at hand at all except stating that, "if RMC is produced at site then alone the assessee is entitled to exemption under the requisite notification." There is no discussion on this behalf as well. Though, Para 3 starts with the words : "As stated above", a reading of earlier paras reveals that in the preceding paras also there is no discussion on this aspect. It appears that the parties proceeded on the basis that if RMC is produced at site, it will be entitled to exemption. Otherwise there is no discussion that RMC is different from CM and the notification mentioned only approves CM and not RMC. Moreover, Para 5 of the said judgment would disclose that after setting aside the order of the Tribunal and in an appeal filed by the Revenue, matter was remitted back to the Tribunal without expressing any opinion on the merits of the case. Para 5 reads as under : "5. In the above circumstances, we set aside the impugned order of the Tribunal and we remit the matter to the Tribunal to decide, in ....