By TIOL News Service

CHENNAI, AUG 29, 2014: THE applicants are engaged in the manufacture of cement falling under Chapter 25 of Central Excise Tariff Act, 1985. The duty on cement is payable on specific rate of duty. The Notification No.4/2006-CE dated 01.03.2006 as amended from time to time had extended concessional rate of duty in respect of various commodities. In the present case, the applicant supplied cement free of cost for construction work within the applicant's factory premises. The applicant claimed benefit of exemption under Notification No. 4/2006-CE (supra). The adjudicating authority denied the benefit of the said notification and confirmed the demand of duty of Rs. 15,80,436/- on the basis of tariff rate of duty.

According to the Revenue, S.No. 1A of the table appended to the said notification would apply in the case of sale of cement. The contention of the appellant is that the notification would apply even if there is no sale.

The Tribunal held:

Prima facie, on perusal of Explanation to S.No. 1C of the table appended to the said notification, it is seen that “retail sale price” means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumers. Prima facie, there is no sale in this case. Hence, the applicant failed to make out a prima facie case in their favour. Accordingly, the applicant is directed to make a pre deposit of an amount of Rs. 5,00,000/- within a period of eight weeks.

(See 2014-TIOL-1629-CESTAT-MAD)