CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL BANGALORE REGIONAL BENCH - COURT NO. 2 Excise Appeal No. 20222 of 2018 (Arising out of Order-in-Appeal No. 473-474/2017 CT dated 27.11.2017 passed by the Commissioner of Central Tax (Appeals-II), Bangalore)

Gammon India Limited Gamon House, Veer Savarkar Marg., P.O., Box.

No. 9129, Prabhadevi, Mumbai, Maharashtra – 40002 ........Appellant VERSUS Commissioner of Central Tax, Bangalore North west

2^nd Floor, South Wing, BMTC Complex, Shivaji Nagar, Bengaluru, Karnataka – 560051 ............Respondent Appearance:

Mr. Prakash Shah, Senior Advocate & Mr. Mihir Mehta, Advocate for the Appellant Mr. Rajashekar. B.N.N, Authorised Representative (AR) for the Revenue Coram:

Hon'ble Mr. P.A. Augustian, Member (Judicial)

Hon'ble Mr. Pullela Nageswara Rao, Member (Technical)

Final Order No. 20026 /2026 Date of Hearing: 12.09.2025 Date of Decision: 09.01.2026 Per: Pullela Nageswara Rao This appeal was filed against Order-in-Appeal No. 473-474/2017 CT dated 27.11.2017 passed by the Commissioner of Central Tax (Appeals-II), Bangalore.

2. The issue in the present appeal is whether the Appellant can be considered as the manufacturer of the goods, whether the goods are classifiable as 'Ready Mix Concrete (RMC)' and are liable to duty.

3. The brief facts are the Appellant is engaged in construction of commercial, industrial and infrastructure projects. The Appellant was awarded with the following 2(two) road projects by National Highway Authority of India (NHAI) in the State of Karnataka in September 2008.

(a) Western Transport Corridor-NH4 Project Package IV- Rehabilitation and upgradation of Chitra Durga-Harihar (Km 207 to 284) ("Package IV")

(b) Western Transport Corridor-NH4 Project Package V- Rehabilitation and Upgradation of Harihar-Haveri (Km 284 to 304)

("Package V")

4. The appellant through agreements dated 21.07.2009 and 17.04.2010, sub-contracted the aforesaid Package-IV and Package-V projects to M/s. Deepika Infrastructure Private Ltd., ("DIPL") on back-

to-back basis.

5. M/s. Deepika Infrastructure Private Ltd. ("DIPL") for the execution of the project installed 2(two) batching plants at a fixed place located on the stretch of the two construction sites i.e. Near Kundawada, Davangere (264 km stone) and Hanumanmatti, Asundi village (311km stone) to manufacture 'concrete mix' falling under Chapter 38 of the First Schedule to Central Excise Tariff Act, 1985 within the vicinity of the road construction under the aforesaid 2(two)

packages.

6. The Department alleging that the Appellant had manufactured 'Ready Mix Concrete (RMC)' falling under Chapter Heading (CETH) 38245010 of first schedule of the Central Tariff Act, 1985 with effect from 01.03.2011 without payment of excise duty, proceedings were initiated and show cause notice was issued on 03.03.2014 for the period from March 2011 to January 2014 and Adjudication authority as per the Order-in-Original dated 15.03.2016 confirmed the demand of excise duty with interest and also imposed penalties on the Appellant as well as Project Manager of the Appellant. Aggrieved by said order, appeals were filed before the Commissioner (Appeals) and Commissioner (Appeals) upheld the finding of the Adjudication authority against the Appellant herein and dropped the proceedings against the Project Manager. Aggrieved by said order, the present appeal was filed.

7. The Sr. Learned Counsel for the Appellant during the hearing submits that the goods manufactured in the said plant is not 'Ready mix concrete (RMC)', but it is 'concrete mix' falling under Chapter 38 of the first schedule to the Central Excise Tariff Act, 1985 (CETA, 1985). Appellant had made detailed submission and draws our attention to Circular No. 368/1/98 dated 06.09.98, wherein it is clarified that for manufacturing 'Ready mix concrete (RMC)', integrated and automated plant is required whereas the batching plant installed in the premises is mechanically and manually operated concrete plant. The Sr. Learned