Question : Whether there is a need to declare MRP on cement cleared to builders and Govt.?
Answer : Builders, government and RMC (Ready-mix Concrete) producers quality as ‘industrial/institutional buyers’ and there is no need to declare RSP (retail sale price) on cement cleared to them
CESTAT, NEW DELHI BENCH
Ultratech Cement Ltd.
Commissioner of Central Excise, Indore
AND R.K. SINGH, TECHNICAL MEMBER
FINAL ORDER NO. A/53733/2014-EX(DB)
APPEAL NO. E/2654/2008-EX(DB)
SEPTEMBER 5, 2014
Section 5A, read with section 4 and section 4A of the Central Excise Act, 1944 – Exemptions – Central Excise – General – Assessee cleared cement to : (a) builders, contractors; (b) Grasim Industries, Vikram Cement, etc., who did not use cement in manufacture but for constructing factory building, etc.; (c) Government, and (d) ready-mix-concrete producers, etc. – Assessee claimed benefit of partial exemption under Entry 1C of Notification 4/2006-CE as declaration of retail sale price (RSP) was not mandatory on these sales – Department denied exemption, as said clearances were not to industrial or institutional consumers – HELD : Builders/developers are ‘institutional consumers’ – Grasim Industries, Vikram Cement, etc., using cement in construction work, would qualify as ‘builders’ – Further, ready-mix-concrete producers would qualify as industrial consumers – Government would qualify as institutional buyer – Since RSP was not required to be printed on such sales, same were eligible for exemption [Paras 5 to 7] [In favour of assessee]
Circulars and Notifications : Notification No. 4/2006-C.E., dated 1-3-2006