No excise duty payable on the supply of concrete mix: CESTAT

The Allahabad Customs, Excise and Service Tax Appeals Tribunal (CESTAT) ruled that no excise duty was payable on the supply of concrete mix.

The issue at stake in these appeals is whether the “ready-mixed concrete (RMC for short) or the” concrete mix “manufactured by the appellant at the M / s Supertech Limited site and supplied to him provided, if it is dutiable under the Central Excise Act.

It appeared to Revenue that the appellant, M / s Ambit Concrete (P) Ltd. manufactured and supplied RMC to M / s Supertech Limited, by manufacturing in their concrete plant installed at the M / s Supertech Limited site, for its residential project at Eco Village-II. In addition, M / s Supertech Limited provided information, namely copies of purchase invoices, details of copies of ledger accounts regarding RMC purchased from the appellant for the period 2012-2013 to 2015-2016 (until February 2016), see their letter.

The Coram of the judicial member, Anil Choudhary, and the technical member, P. Anjani Kumar concluded that from the notice of justification and the original contested order, none of these facts had been found and / or alleged in the instant show cause notice. . Admittedly, there was no inspection on the site (Eco Village-II), where the applicant installed its concrete plant to supply M / s Supertech Limited. In addition, it is true that the appellant registered under the provisions relating to the service tax with the department and paid a service tax on the labor costs. Admittedly, the appellant raised two invoices, one for the supply of materials and the other for the execution works – mixing cement, water aggregates, etc. in its concrete batching plant. In addition, the appellant increased the invoice for the work for the concrete mix.

“We find that Revenue has not recorded any facts to support its allegation of manufacture of RMC by the appellant. Thus, on the facts and the circumstances, we find that what was manufactured and supplied by the appellant is a “concrete mix”, which is not dutiable. Further, in light of our finding that the appellant registered for the service tax, paid the service tax and complied with said disputed activity, the facts were within the knowledge of the Department and, in as such, the extended limitation period cannot be invoked. . We further note that in commercial jargon, “concrete mix” and “RMC” are used interchangeably, as specified in the Council Circular and the Honorable Supreme Court. The manufacture of RMC is a process involving several machines and is a matter of precision, ”said the court.

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