Cenvat credit on steel items for repair, maintenance and capital goods support structures upheld where precedent covered the issue.

Cenvat credit on steel items used for repair, maintenance and fabrication of support structures connected with capital goods was treated as admissible. The analysis noted that the repair and maintenance issue was already covered by the jurisdictional High Court in the assessee's own case, while fabrication of support structures on which capital goods were placed was supported by Tribunal precedent. On that basis, the lower appellate authority's relief was sustained and the departmental challenge failed.

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Issues: Whether Cenvat credit on steel items used for repair, maintenance and fabrication of capital goods was admissible.

Analysis: The dispute related to steel items such as plates, channels, angles, beams and similar materials used in repair and maintenance and in fabrication of structures connected with capital goods. The issue on repair and maintenance was covered by the jurisdictional High Court in the assessee's own case, and the issue on fabrication was covered by Tribunal precedent allowing credit on fabrication of support structures on which capital goods were placed. In view of these authorities, no reason was found to interfere with the relief granted by the lower appellate authority.

Conclusion: The Cenvat credit was held to be admissible in favour of the assessee.

Final Conclusion: The departmental appeal failed and the order granting relief to the assessee was sustained.

Ratio Decidendi: Where steel items are used for repair, maintenance or fabrication of support structures connected with capital goods, Cenvat credit is allowable when the issue is covered by binding or persuasive precedent.

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