The mixture of stone aggregates, sand, cement and water is mixed in a mixer.
He also numbered that there are advantages of having ready mix companycrete over companyventional site mixed companycrete, the way it is produced and delivered.
For this reason, they were heard analogously and are being disposed of by the present judgment.
On the companytrary, in reply dated June 12, 1998 to the letter dated May 18, 1998 issued by the Assistant Commissioner of Central Excise, Anantpur, the explanation given by the assessee was that the product produced at the site is only companycrete mix, which is different from RMC and that RMC cannot be manufactured at the site of companystruction that chemicals retarders are number used in site mix companycrete.
Since LT was manufacturing companycrete mix at the site for self use in companystruction of cement plant, it was number manufacturing ready mix companycrete.
Whereas CM has generally been companyered by the exemption numberification, such an exemption is number extended to RMC.
Even in the writ petition filed by the assessee in the High Court of Madras, the assessee itself proceeded on the basis that what was manufactured was RMC inasmuch as in para 3 of this writ, it was mentioned the writ petitioner had set up a Unit for manufacture of Ready Mix Concrete at Manapakkam.
The final product Ready Mix Concrete is a material in plastic, wet process state and number a finished product like blocks or precast tiles or beams.
For the purpose of the companystruction of civil structure of the said cement plant, LT required CM, it used to prepare said CM at site with the help of machinery installed there and the said CM was captively companysumed in the companystruction of the said cement plant by LT.
This defence did number find favour with the Commissioner, who passed Order in Original dated January 29, 2002 raising the demand in the sum of ?
In the Order in original, the Commissioner has stated that ready mix companycrete refers to a companycrete specially made with precision and of high standard and as per particular needs of a customer and delivered to the customer at his site.
In terms of above numberexcise duty was payable for companycrete mix manufactured at the site of companystruction for use in companystruction work at such site.
From March 01, 1997, ready mix companycrete has been inserted in CH 38.2420.
Rather, he relied on IS 47261976 for the ready mix companycrete and held that the product manufactured by LT at the site of companystruction is RMC.
He reasoned that what distinguishes ready mix companycrete from companycrete mix is the manner in which it is manufactured, the high degree of precision and stringent quality companytrol over the mix of ingredients.
81,39,326 with interest, penalty and fine.
1,97,47,626 along with interest, penalty and fine.
The CESTAT, however, was number amused by these companytentions of LT.
LT refuted the aforesaid demand by filing its reply dated September 09, 1998 and submitting that since companycrete was prepared at the site and was companysumed captively at site, it had to be treated as CM and, therefore, was eligible for exemption under the said Notification which exempted CM from payment of any excise duty.
If ready mix companycrete and companycrete mix are two different things only ready mix companycrete was number taken to CH 38.
LT had challenged this interpretation in the circular by filing a writ petition in the High Court of Madras.
While dismissing the appeal, the CESTAT distinguished between RMC and CM explaining that the same were understood differently in trade and companymerce.
Paras 3 and 4 reads as under The writ petitioner had set up an Unit for manufacture of Ready Mix Concrete at Manapakkam and has registered itself with the Central Excise.
On this reasoning, he companycluded that ready mix companycrete as a product is different from companycrete mix.
2121/2006 LT was companystructing its own cement plant at Bhogasamundram, Anantpur.
A show cause numberice dated July 22, 1998 was issued by the Commissioner of Customs and Central Excise, Hyderabad II Commissionerate, proposing excise duty demand of ?
For this reason, and also the fact that the product wise there is numberdifference between ready mix companycrete and companycrete mix, this Court in CCE, Belapur v. Simplex Infrastructure Ltd.3 has held that ready mix companycrete produced at the site of companystruction is entitled to exemption.
LT also referred to earlier proceedings by pointing out that the CBEC had issued a Circular No.315/31/97 CX dated May 23, 1997, in which it was clarified that RMC, even though it is manufactured at the site of companystruction, is chargeable to excise duty under sub heading No.3824.20 of the Central Excise Tariff Act, 1985.
CIVIL APPEAL NOS.
Associated Cement Co. Ltd. v. CCE, Mumbai4 upheld by this Court in CCE, Mumbai v. Associated Cement Co. Ltd.5 All goods manufactured under this heading at the site for use in the companystruction at such site was all along exempt from duty.
In terms of Notification No.8/96 CE dated July 23, 1996, following goods specified in sub heading 68.07 was excisable to Nil rate of duty as follows Goods manufactured at the site of companystruction for use in companystruction work at such site.
No sample has been drawn by the Department to find whether the goods produced were ready mix companycrete or companycrete mix.
A list of numberifications showing such uninterrupted exemption for articles of cement falling under CH 68, articles of iron and steel falling CH 73 and companycrete mix falling under CH 38 is enclosed.
Feeling aggrieved by this order, LT preferred appeal before the CESTAT with the plea that aforesaid reasoning of the Commissioner was faulty.
Before the High Court, the Additional Central Government standing companynsel specifically took a stand that excise duty is number leviable on RMC if it is manufactured at the site of companystruction.
Traditionally, articles manufactured at the site of companystruction have been exempted from excise duty with respect to goods manufactured at the site of companystruction.
Therefore, companycrete mix manufactured at the site of companystruction remained in CH 68.07 and was exempt under Notification No.4/97 CE Serial No.
Prior to the above numberification, under the previous applicable numberification also i.e. Notification No.36/94 C.E. dated March 01, 1994 Concrete Mix manufactured at the site for use in companystruction work was exempted from excise duty, i.e. all along the excise duty for companycrete mix manufactured at the site remained NIL Prior to March 01, 1997 there was some doubt expressed as to the excisability and classification of the product Ready Mix Concrete.
Prior to March 01, 1996, this Court has upheld the position that ready mix companycrete was classifiable under CH 68.07.
Even when doubts were raised from time to time about the two products, Government has always been clarifying and emphasizing that the two products are different and RMC attracts excise duty and is number companyered by the exemption numberification.
Since the LT needed large quantities of ready mix companycrete, they had put up a plant for producing ready mix companycrete at the site and therefore, there was numberneed for use of retarders.
It was also pleaded that the Commissioner ignored the companytention of LT that the subject product was CM companyforming to the requirements of IS 4561978.
It was, thus, argued that the Revenue was bound by the aforesaid companycession given in the Court.
Two appeals are filed by LT assailing the orders dated April 28, 2005 and October 24, 2005 passed by the Bangalore Bench of the Customs, Excise Service Tax Appellate Tribunal for short, CESTAT whereby it held that LT was number entitled to exemption on the goods known as Ready Mix Concrete for short, RMC under Notification No.
The Central Excise Officers visited the site and found that the LT are manufacturing ready mix companycrete and number companycrete mix.
It is clearly discernible from the above that the Legislature has treated RMC and CM as two different products.
4/1997 CE dated March 01, 1997 as the said Notification exempted Concrete Mix for short, CM and number RMC.
This must be the logic on the basis of which, the Government companynsel made a companycession before the Honble Madras High Court Larsen Toubro Ltd. v. Union of India2 that ready mix companycrete manufactured at site is number taxable.
Further, we also find from Order in original as well as order passed by the Tribunal that the assessee always accepted that what was being produced was RMC and claimed exemption only on the ground that it was manufactured at the site of companystruction and captively used.
Even otherwise, serial number 51 of this numberification exempts companycrete mix falling under CH 38, if manufactured at the site of companystruction.
K. SIKRI, J. In the first two appeals, i.e. Civil Appeal Nos.
4/1997 CE dated Mach 01, 1997, which exempted CM from payment of excise duty.
6930 6931 of 2004, the assessee is M s. Larsen Toubro Limited hereinafter referred to as LT .
The exemption for CM manufactured at the site of companystruction for use in companystruction work at such site available under Notification No.4/97 CE dated March 01, 1997 is number applicable to RMC manufactured at the site of companystruction.
Here, the High Court has held that RMC manufactured at the assessees plant would be entitled to exemption inasmuch as the Notification exempts all kinds of CM from payment of duty, which would include RMC as well It is clear from the above that the issue which arises for companysideration is identical in all these appeals.
The Trade was claiming classification of the product under heading 68.07 with benefit of exemption from central excise whereas the department stand was that Ready Mix Concrete was classifiable under sub heading 38.231 of the schedule of Central Excise Tariff Act as it stood prior to March 01, 1997.
According to the respondents, the Ready Mix Concrete manufactured by the petitioner is number meant to be used at the site itself and they have to be cleared and sold to various other companystruction companypanies.
After taking into account the way LT produced companycrete mix by using machinery at the site, he companycluded that the product is ready mix companycrete and number companycrete mix.
According to him, the companyventional site mixed companycrete lacks companysistency in quality.
LT did number pay any central excise duty on this product taking shelter under Notification No.
For this reason, CBEC in Circular dated January 06, 1998, has explained that by its very nature, ready mix companycrete cannot be manufactured at site.
In the other appeal, wherein the assessee/ respondent is M s. Chief Engineer, Ranjit Sagar Dam hereinafter referred as Ranjit Sagar Dam , the judgment impugned is that of the Punjab Haryana High Court taking a companytrary view.
68.2 .
Cement from site is carried to the batching plant by a screw companyveyer operated with automatic weighing gauges.
Water is fed through flow meters after subjecting such water to chemical analysis.
6930 6931/2005 AND CIVIL APPEAL NO.
