Ready Mix Concrete

Taxability of Ready Mix Concrete, now days has gathered a great impetus, due to various investigations and enquiries being raised by the excise department to collect excise duty.
It is pertinent to note that till now, exemption Notification No. 12/2012-CE is applicable only to concrete mix, and in contrast, RMC {classifiable under tariff heading 3824 50 10} was chargeable at tariff rate of 6% {and further in terms of Notification No. 1/2011- C.E. dated 01.03.2011 as amended (Sl.No.46) an option to pay the excise duty at concessional rate of 2% was also available subject to non-availment of CENVAT credit}.
Thus a lot of confusion persists regarding difference between Ready Mix Concrete and Concrete Mix.
Further, the Supreme Court in the case of Larsen and Toubro Ltd Vs. CCE, Hyderabad dated 06 October 2015, while deciding on the Exemption Notification no. 4/1997-C.E. (as amended by 12/2012-C.E.),has clarified that Concrete Mix and Ready Mix concrete have two different meanings and the said exemption notification is applicable only to Concrete Mix manufactured at the site of construction for use in construction work at such site.
Nullifying the effect of the Apex Court’s decision, and in a way to provide a big relief to the real estate sector, Hon’ble Finance Minister, in the current Union Budget 2016, has extended the benefit earlier available to concrete mix only, to RMC as well, thereby suitably amending the earlier notification 12/2012 vide Notification no. 12/2016-C.E. effective from 01-03-2016 so as to include Ready Mix Concrete for providing exemption from Excise duty along with Concrete Mix.
The said entry of the notification 12/2016 is read as follows:
“Concrete Mix or Ready-mix Concrete (RMC), manufactured at the site of construction for use in construction work at such site.
Explanation. – For the purpose of this entry, the expression “site” means any premises made available for the manufacture of goods by way of a specific mention in the contract or agreement for such construction work, provided that the goods manufactured at such premises are solely used in the said construction work only.”