{"id":4490,"date":"2025-06-21T17:20:18","date_gmt":"2025-06-21T11:50:18","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4490"},"modified":"2025-06-21T17:20:18","modified_gmt":"2025-06-21T11:50:18","slug":"sc-allows-exemption-for-cement-sales-to-institutions-regardless-of-packaging","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/sc-allows-exemption-for-cement-sales-to-institutions-regardless-of-packaging","title":{"rendered":"SC Allows Exemption for Cement Sales to Institutions Regardless of Packaging"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000399788\/exemption-benefit-available-for-all-clearances-to-institutional-buyers-regardless-of-cement-being-in-individual-bags-sc\">Commissioner of Central Excise and Service Tax, Rajkot Versus Shree Digvijay Cement Co. Ltd. (2025) 31 Centax 87 (S.C.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>J.B. Pardiwala<\/strong> &amp; <strong>R. Mahadevan<\/strong>, JJ.<\/li>\n<li><strong>S\/Shri N. Venkataraman<\/strong>, A.S.G., <strong>P.V. Yogeswaran, Rupesh Kumar, Ms Nisha Bagchi, Sharath Nambiar, Shantanu Sharma<\/strong>, Advs., <strong>Gurmeet Singh Makker<\/strong> &amp; <strong>Mukesh Kumar Maroria<\/strong>, AOR&#8217;s, for the Appellant.<\/li>\n<li><strong>S\/Shri V. Sridharan<\/strong>, Sr. Adv., <strong>Ms Sheena Taqui, Ms Akansha Saini, Ms Charanya Lakshmikumaran, Shiv Vinayak Gupta, Ayush Agarwal, Karan Talwar, Ashwin Joseph,<\/strong> Advs., <strong>Mrs Bina Gupta<\/strong> &amp; <strong>Santosh Krishnan<\/strong>, AOR&#8217;s, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner in this matter was the Department of Revenue, which filed a Civil Appeal before the Supreme Court challenging the orders of the CESTAT. The issue arose from the assessee\u2019s claim to exemption under Notification No. 4\/2006-CE, dated 01-03-2006 in respect of clearances of cement made to institutional buyers. The Department contended that the benefit of the said Notification was not available where cement was not sold in individual bags, asserting that the exemption was conditional upon packaging. The CESTAT, however, had allowed the benefit to the assessee, holding that the nature of packaging was not determinative when sales were made to institutional buyers. The matter was accordingly placed before the Hon\u2019ble Supreme court.<\/p>\n<h2><em>Supreme Court Held<\/em><\/h2>\n<p>The Hon\u2019ble Supreme Court held that there was a delay in the filing of the appeal, which remained unexplained by the Department. On merits, the Court found no ground to interfere with the orders of the CESTAT, which had correctly held that the benefit of exemption under Notification No. 4\/2006-CE, dated 01-03-2006 was available to the assessee for all clearances to institutional buyers, irrespective of whether the cement was sold in individual bags. Consequently, the appeal was dismissed both on the ground of delay and lack of merit.<\/p>\n<h2><em>List of Cases Reviewed<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2025)%2031%20Centax%2086%20(Tri.%20-%20Hyd.)&amp;itemType=AP\">Parasakti Cement Industries Ltd. v. Commissioner<\/a> \u2014 (2025) 31 Centax 86 (Tri. &#8211; Hyd.) \u2014 Affirmed [Paras 1, 2, 3]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2020%20(371)%20E.L.T.%20856%20(Tribunal)&amp;itemType=AP\">Shree Digvijay Cement Co. Ltd. v. Commissioner<\/a> \u2014 2020 (371) E.L.T. 856 (Tribunal) \u2014 Affirmed [Paras 2, 3]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Commissioner of Central Excise and Service Tax, Rajkot Versus Shree&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4495,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-4490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SC Allows Exemption for Cement Sales to Institutions Regardless of Packaging<\/title>\n<meta name=\"description\" content=\"SC upholds CESTAT ruling: Cement clearances to institutional buyers qualify for exemption, even if not sold in individual bags. Appeal dismissed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/sc-allows-exemption-for-cement-sales-to-institutions-regardless-of-packaging\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SC Allows Exemption for Cement Sales to Institutions Regardless of Packaging\" \/>\n<meta property=\"og:description\" content=\"SC upholds CESTAT ruling: Cement clearances to institutional buyers qualify for exemption, even if not sold in individual bags. 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