TaxTMI 
TaxTMI 
TaxTMI 
2017 (11) TMI 474
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....ed 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 table below: M/s DLF Projects Limited S.No. A....
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.....) 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 for manufacture of "Ready-Mix-Concrete for use in construction in the immediate vicinity of the Plant. The appellant also is not disputing the fact that the goods manufactured by them were in fact "Ready-Mix-Concrete". They have claimed that since such g....
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....rom 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 improve the properties of fresh and hardened concrete. They are used to modify the rate of setting and strength, especially during solid and cold weather. The most common, is an air-entraining agent that develops millions of tiny holes in the concrete, which imparts the durability to....
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....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 accordance with law, the dichotomy which arises in the present case between the existence of the batching plant, its location, its mobility and the area of the site. We make it clear that we express no opinion on the merits of the case. We remit this matter only on the basis of the statement ma....