Cenvat credit on mining equipment spares and tyres upheld where identical issue was already decided in assessee's favour.
Cenvat credit on tyres used in Low Profile Dump Trucks deployed in captive mines was allowed because the same credit entitlement had already been decided in the assessee's own case and no contrary authority was shown. Cenvat credit on spares of Ventra Locomotives used in captive mines was also allowed on the same basis, as the earlier favourable decision in the assessee's own case was followed. The disallowances and demand confirmations were set aside. The stated principle is that where an identical credit issue has already been decided in the assessee's favour and no contrary decision is brought to notice, that earlier view should be followed and credit should not be denied.
Issues: (i) Whether Cenvat credit was admissible on tyres used in Low Profile Dump Trucks deployed in captive mines; (ii) Whether Cenvat credit was admissible on spares of Ventra Locomotives used in captive mines.
Issue (i): Whether Cenvat credit was admissible on tyres used in Low Profile Dump Trucks deployed in captive mines.
Analysis: The eligibility of credit on tyres used in the dump trucks had already been decided in the assessee's favour in its own case. No contrary decision was brought to notice.
Conclusion: Cenvat credit on tyres used in Low Profile Dump Trucks was held admissible in favour of the assessee.
Issue (ii): Whether Cenvat credit was admissible on spares of Ventra Locomotives used in captive mines.
Analysis: The eligibility of credit on spares of the locomotives had also been decided earlier in the assessee's favour in its own case. No contrary decision was cited.
Conclusion: Cenvat credit on spares of Ventra Locomotives was held admissible in favour of the assessee.
Final Conclusion: The disallowances and demand confirmations were set aside and the assessee succeeded on both issues.
Ratio Decidendi: Where an identical credit entitlement issue has already been decided in the assessee's own case and no contrary authority is shown, the earlier decision should be followed and credit cannot be denied.
TaxTMI 
AI Drafter ✕
TaxTMI 
