Case Law Details
Ambit Concrete (P) Ltd. Vs Commissioner, Central Tax Goods, Service Tax & Central Excise (CESTAT Allahabad)
Conclusion: What had been manufactured and supplied by assessee was ‘concrete mix’, which was not dutiable. Revenue had not brought any facts on record in support of its allegation of manufacture of RMC by assessee. Therefore, ‘concrete mix’ manufactured by assessee was not dutiable under Central Excise Act.
Held: The issue involved in these appeals was whether ‘Ready Mix Concrete’ or ‘concrete mix’ manufactured by assessee at the site of M/s Supertech Limited, and supplied to them, whether it was dutiable under Central Excise Act. It was held that admittedly, there had been no inspection at the site (Eco Village-II), where assessee had installed their batching plant for supplying to M/s Supertech Limited. Further, admittedly assessee had taken registration under Service Tax provisions with the Department, and were paying service tax on the job charges. Admittedly, assessee had raised two bills one for supply of material and the other for job work – mixing the cement, aggregate water, etc. in its batching plant. Further, assessee had raised the job work invoice for concrete mix. Accordingly, Revenue had not brought any facts on record in support of its allegation of manufacture of RMC by assessee. Thus, it was concluded that what had been manufactured and supplied by assessee was ‘concrete mix’, which was not dutiable. Further, assessee had taken registration for service tax, paying service tax and making compliances for the said activity under dispute, the facts were in the knowledge of the Department and as such extended period of limitation was not invokable. Further, in trade parlance ‘concrete mix’ and ‘RMC’ were used interchangeably, as clarified by the Board Circular and by the Hon’ble Supreme Court. Manufactured of RMC was a process involving several machines and was a matter of precision.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
The issue involved in these appeals is whether ‘Ready Mix Concrete’ (RMC in short) or ‘concrete mix’ manufactured by the appellant at the site of M/s Supertech Limited, and supplied to them, whether it is dutiable under Central Excise Act.
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