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Regarding Board's Circular No. 237/71/96-CX dated 12.8.96 classification
of Ready Mix Concrete
Circular
No. 315
dated 23rd May 1997
I
am directed to refer to Member (CX)'s D.O. letter of even number dated 22.1.1997
(Copy enclosed) 1 wherein it was directed the Board's Circular No.
237/71/96-CX dated 12.8.96 regarding classification of Ready Mix concrete be
kept in abeyance. After re-examining the matter it has been decided to withdraw
the aforesaid instruction contained in Member (CX)'s D.O. letter dated
22.1.1997. Accordingly, the clarification issued vide above mentioned Circular
dated 12.8.1996 stating that the product Ready Mix Concrete is an excisable
goods and is classifiable under Heading No. 38.23 of Central Excise Tariff Act,
1985 stands confirmed.
2.
In the 1997-98 Budget 'Concrete Mix' falling within Chapter 38 and
manufactured at the site of construction for use in construction work at such
site has been exempted from central excise duty vide notification No. 4/97-CE (S.No.
51) dated 1.3.1997. Board's Circular No. 237/71/96-CX dated 12.8.96 refers to
Ready Mix Concrete which figures as a new Tariff entry namely sub-heading No.
3824.20 w.e.f. 1.3.97 chargeable to duty @ 13%. A doubt has been raised as to
whether the exemption from excise duty is available to "Concrete Mix
manufactured at the site of construction for use in construction work at such
site" is applicable to "Ready Mix Concrete" manufactured at the
site of construction.
3.
In this connection a representation has been received from the Indian
Ready Mix Concrete association, Mumbai wherein they have stated that Ready Mix
Concrete and Concrete Mix are two separate and distinguishable commodities. The
Association has requested to clarify this point so as to avoid divergent
practices.
4.
The Board has examined the matter and is of the view that Ready Mix
Concrete and Concrete Mix are two separate and distinguishable commodities.
Ready Mix Concrete, even if it is manufactured at the site of construction, is
chargeable to excise duty @ 13% under sub-heading No. 3824.20 of Central Excise
Tariff Act, 1985. The exemption for concrete mix manufactured at the site of
construction for use in construction work at such site available vide S. No. 51
of Notification No. 4/97-CE dated 1.3.1997 is not applicable to Ready Mix
Concrete manufactured at the site of construction.
5.
All pending disputes/ assessments on the issue may be settled in the
light of these guidelines.
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