Cenvat credit on welding electrodes for repair and maintenance upheld as inputs; non-speaking SLP dismissal has no precedential effect.

Welding electrodes used for repair and maintenance of plant and machinery were treated as eligible for Cenvat credit as inputs. The Tribunal noted that non-speaking dismissal of an SLP does not amount to affirmation on merits and is not a binding precedent. It also applied the principle that the doctrine of merger does not operate when special leave is refused without reasons. In light of the High Court rulings recognising such electrodes for repair and maintenance, the orders denying credit were set aside.

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Issues: Whether welding electrodes used for repair and maintenance of plant and machinery are eligible for Cenvat credit as inputs or capital goods.

Analysis: The Tribunal relied on the view that dismissal of an SLP by a non-speaking order does not constitute a binding precedent and does not amount to affirmation on merits. It noted that the High Courts had held welding electrodes used for repairs and maintenance to be eligible for credit, and that the doctrine of merger does not operate where the superior court merely refuses special leave without speaking reasons.

Conclusion: Welding electrodes used for repair and maintenance of plant and machinery were held eligible for Cenvat credit as inputs, and the orders denying credit were set aside.

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