CENVAT credit on common inputs for exempted and dutiable goods not disallowed where prior rulings favoured the assessee.

CENVAT credit on common inputs used in both exempted and dutiable goods was held not to be liable for disallowance merely for failure to maintain separate accounts, where the issue had already been decided in the assessee's own case and in a similar matter in its favour. The Tribunal followed those earlier rulings and concluded that the demand requiring reversal of credit could not be sustained. The denial of credit was set aside and the assessee's appeal was allowed.

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Issues: Whether credit taken on common inputs used in the manufacture of both exempted and dutiable goods was liable to be disallowed for failure to maintain separate accounts under the CENVAT Credit Rules, 2004.

Analysis: The Tribunal noted that the issue had already been decided in the appellant's own case and also in a similar matter in favour of the assessee. Following those decisions, it held that the order demanding reversal of credit could not be sustained.

Conclusion: The demand for denial of credit was set aside and the appeal was allowed.

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