TaxTMI 
TaxTMI 
2019 (2) TMI 1095
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....marked with MRP/ RSP in addition to the other markings and duty is paid as per Sl.No.1A of the table to notification 04/2006-CE dated 01.03.2006 as amended from time to time. However, when supplied to various bulk users, the bags are not marked with MRP/ RSP but they are marked "specially packed for exclusive industrial use" and "not for retail sale". On such supplies the duty is paid as per Sl.No.1C of the table to notification 04/2006-CE dt.01.03.2006 as amended. The learned Commissioner issued show cause notices alleging that the clearances made directly to various industries like contractors/ builders/ construction companies are not eligible for assessment under Sl.No.1C of the notification 04/2006-CE and therefore, proposed to demand duty under Sl.No.1A of the notification. He also proposed to impose penalty under Rule 25(1) of the Central Excise Rules read with Sec.11AC of the Central Excise Act. He submits that exemption notification exempted goods under various heads is as follows: 1. Individual buyers who buy Cement bags for construction of their own house/ building etc., 2. Contractors/ Builders who buy Cement bags for use in the construction of Buildings etc. and sell....
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....nnexure to this notification, and the Condition number of which is referred to in the corresponding entry in column (5) of the Table aforesaid." S. No. (1) Chapter or heading or sub-heading or tariff item of the First Schedule (2) Description of excisable goods (3) Rate (4) Condition No. (5) 1 2523.29 All goods, manufactured in a mini cement plant and cleared in packaged form - (i) of retail sale price not exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800; Rs.220 per tonne 1 (ii) of retail sale price exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale exceeding Rs. 3800; Rs.370 per tonne 1 1A 2523.29 All goods, whether or not manufactured in a mini cement plant, not covered in S.No.1 and cleared in packaged form of retail sale price not exceeding Rs. 190 per 50 kg or of per tonne equivalent retail sale price not exceeding Rs. 3800; Rs.350 per tonne - 1B 2523.29 All goods, manufactured in a mini cement plant, other than those cleared in packaged form; Rs.250 per tonne 1 1C 2523.29 All goods, whether or not manufactured in a mini cement plant, not covered in S.No.....
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....ion activity has been considered as a service industry by the Finance Ministry itself, which is obvious as there is imposition of Service Tax on the 'commercial or industrial construction services' and also on 'construction complex'. It is an admitted position that the Foreign Trade Policy of Government of India in the list of services as enumerated in Appendix-10 clearly indicated the following services as service industry. "3. Construction and related Engineering services A. General Construction work for building B. General Construction work for Civil Engineering C. Installation and assembly work D. Building completion and finishing work E. Others" 5.3 We have no doubt in our mind that the construction industry is a service industry and the benefits claimed by the appellants of Sl.No.1C will be applicable to the clearances made by them. We find strong force in the contentions raised by the learned counsel that the decision of the coordinate Bench in the case of M/s Grasim Industries Ltd will clearly cover the issue in their favour. We may reproduce the said ratio. "3. The appellant's contention is that goods sold for servicing an industry remain exempt from....
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....e. Therefore, the issue has reached finality. In view of the above, the impugned orders may be set aside with consequential relief. 5. Learned departmental representative agrees that the issue is covered by the order of the Tribunal in the case of Mysore Cements Ltd (supra) as confirmed by the Hon'ble High Court of Karnataka insofar as the institutional buyers are concerned. He further draws the attention of the bench to Para 5 of the show cause notice in which it has been held that the appellant is supplying cement to five categories of buyers. One of these categories is individual buyers who buy cement bags for construction of their own house/ building. This fact has been brought out in Para 19.1 of the impugned OIO which reads as follows: "19.1 From the materials on record it is undisputed that assessees have sold the cement in 50 kgs bags without mentioning any RSP to the following customers. 1. Individual buyers who buy Cement bags for construction of their own house/ building etc., 2. Contractors/ Builders who buy Cement bags for use in the construction of Buildings etc. and sell the buildings/ constructions after completion of construction. 3. Industries who buy c....