Re-credit of Cenvat credit allowed after reversal made under earlier departmental instruction was upheld when Board later revised its view.

Re-credit of Cenvat credit was held permissible where the assessee had first reversed credit on light diesel oil stock in compliance with the then prevailing departmental instruction and earlier Board circular. After the Board revised its view and took a contrary position, the assessee sought restoration of the reversed credit. The Commissioner (Appeals) allowed re-credit, and CESTAT found no material ground to interfere with that view. The departmental challenge therefore failed, and the re-credit remained valid.

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Issues: Whether the assessee, having reversed Cenvat credit on light diesel oil stock pursuant to the then prevailing departmental instruction, was entitled to take re-credit after the Board revised its position.

Analysis: The assessee had reversed the credit only in compliance with the departmental instruction based on the earlier Board circular. When the Board later issued a revised circular taking a contrary view, the assessee sought re-credit of the amount reversed. The Commissioner (Appeals) allowed the re-credit, and no material ground was shown to disturb that view.

Conclusion: The re-credit was permissible and the departmental challenge failed.

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