CESTAT Confirms ACC Limited Eligibility for 2% Concession on RMC as CENVAT Credit Linked to Cement Unit, Not RMC

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) confirmed ACC Limited’s eligibility for a 2% concession on Ready Mix Concrete (RMC) as CENVAT credit linked to the cement unit, not RMC. The case involved ACC Limited, which claimed a 2% concession on RMC under the CENVAT credit rules. The tax authorities disputed the claim, arguing that the concession was not applicable to RMC. However, the CESTAT ruled in favor of ACC Limited, stating that the concession applies to RMC as it is linked to the cement unit. This decision provides clarity on the applicability of CENVAT credit concessions and supports the view that such concessions can be claimed for RMC linked to cement units. The ruling is expected to benefit businesses in the cement and construction industries.