ASSOCIATED CEMENT CO. LTD. Vs. CCE

JUDGEMENT

(1.) THESE two appeals have been filed against the orders dated 30.12.1997 and 20.12.1996 passed by the Commissioner of Central Excise, Mumbai -IV and Mumbai -III.

(2.) These appeals have been filed by the appellants who are engaged in the manufacture of cement in its factories located across in India. One of the most common items used in the construction and building industry in India is concrete. Concrete is used at tens of thousands of sites throughout the country where buildings, bridges, dams, etc. are being built. The appellants state that the excise during the relevant periods and periods prior thereto did not contain any entry covering "concrete" or an "in process" material called "Ready Mix Concrete" (RMC) and even otherwise concrete/RMC was not regarded as excisable commodity by the department. It is further stated by the appellants that in the present proceedings for the first time after several decades the excise department is trying to levy duty on RMC even though neither the expression "RMC" nor "concrete" is used in tariff entry 38.23 where the department seeks to classify this subject item. The assessee received a show cause notice dated 9.5.1996 calling upon the assessee as to why duty amounting to Rs. 41,69,103/ - should not be recovered. Another show cause notice was issued on 26.6.1997 calling upon the assessee to pay a sum of Rs. 8,26,43,587 -. In the first show cause notice period in dispute is from November 1995 to March 1996 and in the second notice period in dispute is December 1993 to October 1996. Replies were filed. Personal hearings were given for the parties. After hearing the parties the two Commissioners by the impugned orders have confirmed the demand. During the course of the argument of stay application, Rs. 2 crores was paid by the assessees towards the duty. Hence the present appeals.

(3.) S /Shri A. Hidayatullah, Senior Counsel along with Shri V.S. Nankani and other Advocates appeared for the appellants. Smt. Reena Arya, SDR appeared for the department.