Cenvat credit entitlement follows prior classification where an identical medicinal product was already held dutiable and credit-eligible.

Cenvat credit was available on a disputed medicinal product where the dosage unit fell below the minimum quantity prescribed under Notification No. 5/86 and the product was treated consistently with an earlier binding decision. The Tribunal applied the prior High Court ratio that such a product is liable to Central Excise duty, eligible for Modvat/Cenvat credit, and not liable to State Excise duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. Because the product was materially identical to the item already decided on the same taxing treatment, the same classification and credit entitlement were followed and the Revenue's challenge failed.

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Issues: Whether the respondent was entitled to Cenvat credit on the disputed product, in view of the prescribed dosage quantity under Notification No. 5/86 and the product's tax treatment under the Central Excise and State Excise regimes.

Analysis: The disputed product was found to be similar to the product considered in an earlier High Court decision, where a dosage unit below the prescribed minimum quantity was held to be liable to Central Excise duty and eligible for Modvat/Cenvat credit, and not liable to State Excise duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. Applying that ratio to the present product, the Tribunal accepted that the same legal position governed the respondent's claim.

Conclusion: The respondent was held entitled to credit, and the Revenue's appeal was rejected.

Final Conclusion: The decision affirms the availability of credit where the product falls within the same taxing treatment as an earlier binding decision on an identical issue.

Ratio Decidendi: Where a product is materially identical to one already held to be exigible to Central Excise duty and eligible for Modvat/Cenvat credit, the same classification and credit entitlement must follow.

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