Cenvat credit on welding electrodes allowed where binding precedent treats them as eligible inputs.

Cenvat credit on excise duty paid on welding electrodes was held admissible because the issue had already been settled by earlier Tribunal and High Court decisions treating such electrodes as eligible inputs. Applying that binding precedent, the claim was accepted on the same footing and the credit could not be denied merely on the ground that welding electrodes were not admissible inputs.

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Issues: Whether Cenvat credit on excise duty paid on welding electrodes was admissible.

Analysis: The entitlement to credit on welding electrodes had already been settled by earlier Tribunal and High Court decisions holding such credit to be admissible. Following that settled position, the present claim was examined on the same footing and accepted.

Conclusion: Cenvat credit on duty paid on welding electrodes was admissible and the assessee succeeded.

Ratio Decidendi: Where the issue is covered by binding precedent holding welding electrodes to be eligible for Cenvat credit, the credit cannot be denied on the ground that such electrodes are not admissible inputs.

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