Sub: Central Excise - Classification of Ready Mix Concrete - Reg.

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Copy of the Board's Circular No. 601/38/2001.CX (F.No. 134/8/2001-CX.4) dated 20^th November, 2001 on the above subject is communicated for information and necessary action. The Circular No. 237/71/96-CX dated 12-8-96 and Circular No. 315/31/97-CX dated 23-5-97 mentioned in the above circular have been communicated as Trade Notice No. 93/96 dated 10-10-96 and Trade Notice No. 65/97 dated 23-6-97 respectively.

The contents of the Trade Notice may please be brought to the notice of all concerned.

(Issued from file C.No. IV/16/2/2001.CX. POL.)

Sd/-

(JANAKI ARUNKUMAR)

ADDITIONAL COMMISSIONER (TECHNICAL)

To

As per mailing list (For both Department and Trade)

I am directed to refer to Board's Circular No. 237/71/96-CX dated12-8-96 and 315/31/97-CX dated 23-5-97 issued from F.No. 126/1/96-CX.3 wherein it has been held that Ready Mix Concrete (RMC) falls under heading 38.23.

2. The matter has been re-examined on dismissal of department's appeal in the case of CCE, Mumbai IV Vs. M/s. Associated Cement Co. wherein CEGAT in Order No. C-II/3333-34 dated 17-11-2000 has held that proviso to Section 11A cannot be invoked and the goods RMC are more appropriately classifiable under heading 68.07.

3. In view of the CEGAT decision holding the classification of Ready Mix Concrete under Chapter 68 and it being upheld by the Apex Court, the Ready Mix Concrete are correctly classifiable under heading 68.07 for the period prior to 1-3-97. Board has accepted the decision affirmed by the Apex Court. The above said Circulars, therefore, stand modified accordingly.

4. It may be noted that the Apex Court decision covers the period prior to 1-3-97 only. With effect from 1-3-97 a specific sub-heading 3824.20 has been inserted to cover Ready Mix Concrete.

Sd/-

(S.C. BHATIA)

Under Secretary to the Government of India