TaxTMI 
TaxTMI 
2026 (4) TMI 1584
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....er dated 22.01.2015 submitted details of production and utilisation of Ready-Mix Concrete from 10.11.2014 to 14.01.2015. It is informed that the plant is solely for use of Construction of Central Portion of Thanneermukkom Barrage (3rd Stage work) under an Agreement dated 27.06.2014 with Superintending Engineer, Kuttanad Development Circle, Kottayam. Consequently, investigation was initiated by the department by recording statement and retrieving records. On completion of investigation, show-cause notice was issued to them on 16.07.2018 proposing to classify Ready-Mix Concrete under subheading 3824.20 (now 3824 5010) and recovery of duty of Rs.17,53,833/- along with interest and proposal for penalty. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by the said order, they filed an appeal before the learned Commissioner (A), who in turn rejected their appeal. Hence, the present appeal. 3. At the outset, the learned advocate for the appellant has submitted that effective rate of excise duty in terms of Sl. No.144 of Notification No.12/2012-CE dated 17.03.2012 was 'Nil' rate of duty in respect of concrete mix manufactured at the site of construction for....
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....could not bring on record any evidence to show that the appellant has used retarders and plasticizers as admixture. Referring to the judgment of the Hon'ble Supreme Court in the case of Larsen and Toubro Ltd. vs. CCE, Hyderabad: 2015 (324) ELT 646 (SC), he has submitted that the process of manufacture of Ready Mix Concrete and the materials used as observed in the said judgment are different than the materials used by the appellant for manufacture of concrete mix; therefore, what the appellant's manufacture are concrete mix which are manufactured nearer to the site, hence, admissible to the benefit of the exemption Notification No.12/2012-CE dated 17.03.2012. Also, in support, he has referred to the Circular No.368/1/98 dated 06.01.1998. Further, he has submitted that the process of manufacture at the allotted site was only mixing of aggregates, cement, water and admixture which was conveyed to the transit mixer over short distance to the work site. The Transit Mixer was used since the concrete mixer was required to be transported from the site allotted near the bank of the lake to the construction site situated in the middle of the lake. All the details about the plant and machine....
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....Undisputed facts are that the appellants are engaged in Construction of Central Portion of Thanneermukkom Barrage (3rd Stage work) under an Agreement dated 27.06.2014 with Superintending Engineer, Kuttanad Development Circle, Kottayam. Since the construction site was inside the river, by an Agreement dated 03.07.2014, as the project required huge quantity of cement concrete mix and there was no land available near the work site, they were allotted a place in Ward No. XIII of Vechoor Grama Panchayath owned by the Irrigation Department at Ambika Market in Kuduvechoor Kara, Vechoor Village, Vaikom Taluk, Kottayam District, for a dedicated concrete mixing plant. The Executive Engineer in their letter to the department dated 08.02.2016 confirmed the allotment of work to the appellant and also informed that there is no possibility of stocking materials and equipments for mixing concrete as the site of the project is in the middle portion of Vembanad Kayal. The appellant was, accordingly, allotted to the instant mixing plant equipment at Ambika Market exclusively for the project. Further, it is not in dispute that the Executive Engineer informed the department about the machineries instal....
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....s also significant to mention that for producing the concrete mix, material used was cement, aggregates, chemically analysed water and admixtures, namely, retarders and plasticizers. As the L&T was constructing cement plant of a very high quality, it needed concrete also of a superior quality and to produce that aforesaid sophisticated and modernised process was adopted. The adjudicating authority in its order explained the peculiar feature of RMC and the following extracts from the said discussion needs to be reproduced : "32. Central Excise Tariff does not define Ready Mix Concrete. Therefore, as per the established 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 remai....
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..... RMC is slowly replacing site or hand mixed concrete because of the distinct advantages due to technology, speed and convenience. Furthermore, absence of the need to deal with multiple agencies for procuring and storing cement, sand, blue metal and water as well as the absence of the need to handle unorganized labour force are factors influencing customers to go in for RMC in preference to CM." 21. 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 1, 1997 exempts only 'Concrete Mix' and not 'Ready Made Mixed Concrete' and we have already held that RMC is not the same as CM." 9. Further, the learned advocate for the appellant placed reliance on the Circular No.368/19/98-CX dated 06.01.1998 and argued that the machineries required for Ready-Mix Concrete has been stated in the said Circular which includes stone crushers, conveyors, vibrator screen to segregate different sizes of stone aggregates and a sand mill to produce sand from stone, etc., therefore, the mixing of concrete carried out by the appellant cannot be said to be....